Intermediate Accounting 12 Investments Investments in Available for-Sale debt and Equity securities December 31 2003 Interest Receivable 125 Interest revenue 125 During 2003 Kent Company receives dividends of $3.000 from its investment in the stocks of A, B, and C companies Cash 3.000 Dividend revenue 3.000
December 31, 2003 Interest Receivable 125 Interest Revenue 125 Cash 3,000 Dividend Revenue 3,000 $15,000 x 0.10 x 1/12 During 2003 Kent Company receives dividends of $3,000 from its investment in the stocks of A, B, and C Companies. Intermediate Accounting 12 Investments Investments in Available-for-Sale Debt and Equity Securities
Investments in Available for-Sale debt and Equity securities The cost and fair value of the available-for-sale securities held by the kent company is as follows tive Allowance for Change in value of Investment 3.000 Unrealized Increase/Decrease in value of available-for- 300 Sale securities 3.000 200 snares o CO. preferred stock A 0U ZO.VUU JUU D Company 10% bonds 1500015500 500 Totals 68,000$71,000$3,000
The cost and fair value of the available-for-sale securities held by the Kent Company is as follows: Cumulative 12/31/03 Change Fair in Fair Security Cost Value Value 100 shares of A Co. common stock $ 5,000 $ 6,000 $1,000 300 shares of B Co. common stock 24,000 23,500 (500 ) 200 shares of C Co. preferred stock 24,000 26,000 2,000 D Company 10% bonds 15,000 15,500 500 Totals $68,000 $71,000 $3,000 Allowance for Change in Value of Investment 3,000 Unrealized Increase/Decrease in Value of Available-forSale Securities 3,000 Intermediate Accounting 12 Investments Investments in Available-for-Sale Debt and Equity Securities
Intermediate Accounting 12 Investments Investments in Available for-Sale debt and Equity securities The same securities are held on december 31. 2004 Cumulative Inge Unrealized Increase/Decrease in Value of available-for-Sale securities 5.000 Allowance for Change in Value of 300 Investment 5.000 200 snares orc co preferred Stock D Company 10% bonds 15.000 14.000 000) ovals 68,000$66,000$(2,000)
The same securities are held on December 31, 2004. Cumulative 12/31/04 Change Fair in Fair Security Cost Value Value 100 shares of A Co. common stock $ 5,000 $ 6,100 $1,100 300 shares of B Co. common stock 24,000 22,700 (1,300 ) 200 shares of C Co. preferred stock 24,000 23,200 (800 ) D Company 10% bonds 15,000 14,000 (1,000 ) Totals $68,000 $66,000 $(2,000 ) Unrealized Increase/Decrease in Value of Available-for-Sale Securities 5,000 Allowance for Change in Value of Investment 5,000 Intermediate Accounting 12 Investments Investments in Available-for-Sale Debt and Equity Securities