- The Following Information Pertains To Botter Supply Company For Year 1 1 Purchased 100 000 Of Marketable Investment S 1 (80.72 KiB) Viewed 38 times
The following information pertains to Botter Supply
Company for Year 1: 1. Purchased $100,000 of marketable investment securities. 2. Earned $10,000 of cash investment revenue. 3. Sold for $30,000 securities that cost $25,000. 4. The fair value of the remaining securities at December 31, Year 1, was $89,000. Required a. Record the four events in a horizontal statements model. Use a separate model for each classification: (1) held to maturity, (2) trading, and (3) available for sale. The first event for the first classification is shown as an example. b. What is the amount of net income under each of the three classifications? c. What is the change in cash from operating activities under each of the three classifications? Complete this
question by entering your answers in the tabs below. Required A Required B Required c Record the four events in a horizontal statements model. Use a separate model for each classification: (1) held to maturity, (2) trading, and (3) available for sale. The first event for the first classification is shown as an example. (Enter any decreases to account balances and cash outflows with a minus sign. In the
Statement of Cash Flows column, indicate whether the event is an operating activity (OA), investing activity (IA), financing activity (FA), or net change in cash (NC). Leave blank to indicate that an element was not affected by the event.) Show less BOTTER SUPPLY
COMPANY Horizontal Statements Models Balance Sheet Income
Statement Event No. Investment Securities Cash
Statement of Cash Flows Liabilities Retained Earnings + Unrealized Revenue / Gain Gain Expense Loss = Net Income 100,000 10,000 5,000 10.000 5,000 10,000 5,000 (100,000) IA 10,000 OA 30,000 1A (25,000) 75,000 = 0 0 + 15,000 + 0 15,000 - 0 = 15,000 (60,000) 100,000 (1) Held to Maturity 1. (100,000) 2. 10,000 3. 30,000 4. Total (60,000) + (2) Trading 1. (100,000) 2. 10,000 3. 30,000 4. Total (60,000) (3) Available for Sale 1. (100,000) 2. 10,000 3. 30,000 (100,000) IA 10,000(OA 30,000 PIA 10,000 5,000 14,000 (25,000) 14,000 89,000 = 10,000 5,000 14.000 29,000 10,000 5,000 14.000 29,000 0 + 29,000 + 0 0 = 1 (60,000) 100,000 10,000 5,000 10,000 5.000 10,000 5,000 (100,000) A 10,000 OA 30,000 IA 4. (25,000) 14,000 89,000 = 14,000 14,000 Total (60,000) + 0 + 15,000 + 15.000 - 0 = 15,000 (60,000) < Required A Required B >
The following information pertains to Botter Supply
Company for Year 1: 1. Purchased $100,000 of marketable investment securities. 2. Earned $10,000 of cash investment revenue. 3. Sold for $30,000 securities that cost $25,000. 4. The fair value of the remaining securities at December 31, Year 1, was $89,000. Required a. Record the four events in a horizontal statements model. Use a separate model for each classification: (1) held to maturity, (2) trading, and (3) available for sale. The first event for the first classification is shown as an example. b. What is the amount of net income under each of the three classifications? c. What is the change in cash from operating activities under each of the three classifications? Complete this
question by entering your answers in the tabs below. Required a Required B Required What is the amount of net income under each of the three classifications? Net Income Held to Maturity Trading Available for Sale < Required A Required C >
The following information pertains to Botter Supply
Company for Year 1: 1. Purchased $100,000 of marketable investment securities. 2. Earned $10,000 of cash investment revenue. 3. Sold for $30,000 securities that cost $25,000. 4. The fair value of the remaining securities at December 31, Year 1, was $89,000. Required a. Record the four events in a horizontal statements model. Use a separate model for each classification: (1) held to maturity, (2) trading, and (3) available for sale. The first event for the first classification is shown as an example. b. What is the amount of net income under each of the three classifications? c. What is the change in cash from operating activities under each of the three classifications? Complete this
question by entering your answers in the tabs below. Required a Required B Required What is the change in cash from operating activities under each of the three classifications? (List any cash outflows with a minus sign.) Held to Maturity Trading Available for Sale Operating Activities Inflow $ 10,000 Inflow $ 10,000 Inflow $ 10,000 Required B Required c>