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Deciphering Financial Statements (Ford Motor Company) The following note is taken from Ford Motor Company’s 2004 annual report:   Amortized Unrealized Book/Fair   Cost Gains Losses Value Available for sale securities         US government...

Writing Assignment (Going around the income statement) FASB Statement No. 115 outlines two different treatments for unrealized gains and losses depending on whether the security is classified as trading or available for sale. Unrealized gains and losses for trading...

Researching Accounting Standards To help you become familiar with the accounting standards, this case is designed to take you to the FASB’s Web site and have you access various publications. In this chapter, we discussed issues relating to investing in debt and equity...

Cumulative Spreadsheet Analysis This assignment is based on the spreadsheet prepared in (1) of the cumulative spreadsheet assignment for Chapter 13. Review that assignment for a summary of the assumptions made in preparing a forecasted balance sheet, income statement,...

Journal Entries for a Capital Lease—Lessee Refer to Practice 15 6. Assume that the lease is to be accounted for as a capital lease. Also assume that the leased asset is to be amortized over the 12 year asset life rather than the 10 year lease term. Make the journal...

Leases on a Statement of Cash Flows—Lessee Refer to Practice 15 6. Net income for the year was $10,000. Except for lease related items, there were no changes in current operating assets or liabilities during the year, no purchases or sales of property, plant, or...

Journal Entries for a Direct Financing Lease—Lessor Refer to Practice 15 12. Assume that the lease is accounted for as a direct financing lease instead of as an operating lease. The interest rate implicit in the lease is 15%. Make the journal entries necessary on the...

Sales Type Lease with a Bargain Purchase Option On January 1, the lessor company purchased a piece of equipment for $6,000 as inventory. The lessor company immediately leased the equipment under a sales type lease agreement. The lease calls for the lessor company to...

Temporary and “Other than Temporary” Changes in Value The securities portfolio for Hill Top Industries contained the following trading securities: Securities Initial Market Value, Market Value, (common stock) Cost Dec 31, 2007 Dec 31, 2008 Randall...