CHAPTER 13InvestmentsASSIGNMENT CLASSIFICATION TABLEBriefABStudy ObjectivesQuestionsExercisesExercisesProblemsProblems1. Discuss why corpora-tions invest in debt andstock securities.12. Explain the accounting2, 3, 4111A, 2A1B, 2Bfor debt investments.3. Explain the accountingfor stock investments.5, 6, 7, 8,9, 102, 32, 3, 4, 52A, 3A, 4A,5A2B, 3B, 4B,5B4. Describe the use ofconsolidated financialstatements.115. Indicate how debt andstock investments are12, 13, 14,15, 16, 17,4, 5, 6, 7,86, 7, 81A, 2A, 3A,5A, 6A1B, 2B, 3B,5B, 6Bvalued and reported onthe financial statements.186. Distinguish between195, 7, 86, 7, 81A, 2A, 3A,1B, 2B, 3B,short-term and long-terminvestments.5A, 6A5B, 6B*7. Describe the content of a9, 109, 107A7Bwork sheet for a consoli-dated balance sheet.*8. Explain the form and20, 217A7Bcontent of consolidated fi-nancial statements.*Note: All asterisked Questions, Exercises, and Problems relate to material contained in theappendix to the chapter.13-1ASSIGNMENT CHARACTERISTICS TABLEProblemDifficultyTimeNumber1ADescriptionJournalize debt investment transactions and showLevelModerateAllotted (min.)3040financial statement presentation.2AJournalize investment transactions, prepare adjustingModerate3040entry, and show statement presentation.3AJournalize transactions and adjusting entry for stockModerate3040investments.4APrepare entries under the cost and equity methods, andSimple2030tabulate differences.5AJournalize stock investment transactions and show state-Moderate4050ment presentation.6A*7APrepare a balance sheet.Prepare consolidated work sheet and balance sheetModerateSimple30403040when cost exceeds book value.1BJournalize debt investment transactions and showModerate3040financial statement presentation.2BJournalize investment transactions, prepare adjustingModerate3040entry, and show statement presentation.3BJournalize transactions and adjusting entry for stockModerate3040investments.4BPrepare entries under the cost and equity methods, andSimple2030tabulate differences.5BJournalize stock investment transactions and show state-Moderate4050ment presentation.6B*7BPrepare a balance sheet.Prepare consolidated work sheet and balance sheet whenModerateSimple30403040cost exceeds book value.13-2BLOOMS TAXONOMY TABLE13-3Correlation Chart between Blooms Taxonomy, Study Objectives and End-of-Chapter Exercises and ProblemsKnowledgeComprehensionApplicationAnalysisSynthesisEvaluationStudy Objective1. Discuss why corporations invest in Q13-1debt and stock securities.Q13-2Q13-3Q13-4Q13-5Q13-8Q13-9Q13-10Q13-6BE13-2BE13-3E13-2E13-3E13-4 E13-5P13-2AP13-3AP13-4AP13-5AP13-2BP13-3BP13-4BP13-5BE13-1P13-1AP13-2AP13-1BP13-2BBE13-12. Explain the accounting for debtinvestments.Q13-73. Explain the accounting for stockinvestments.4. Describe the use of consolidatedfinancial statements.Q13-12Q13-17Q13-13Q13-18Q13-115. Indicate how debt and stockinvestments are valued andreported on the financialstatements.Q13-19BE13-7BE13-8P13-6AP13-6BQ13-20Q13-21Financial ReportingComparative AnalysisExploring the WebCommunicationP13-7AP13-7BQ13-14Q13-16BE13-4BE13-7BE13-8P13-6AP13-6BQ13-15BE13-5BE13-6E13-6E13-7E13-8P13-1ABE13-5E13-6E13-7E13-8P13-1AP13-2AE13-10BE13-9BE13-10 P13-7AP13-7BE13-9P13-2AP13-3AP13-5AP13-1BP13-2BP13-3BP13-5BP13-3AP13-5AP13-1BP13-2BP13-3BP13-5B6. Distinguish between short-termand long-term investments.*7. Describe the content of a worksheet for a consolidated balancesheet*8. Explain the form and content ofconsolidated financial statements.Broadening Your PerspectiveInterpreting Financial Research Case Ethics CaseA Global Focus CookieStatementsChronicleGroup Decision CaseANSWERS TO QUESTIONS1.2.3.4.5.6.The reasons corporations invest in securities are: (1) they have excess cash not needed for op-erations that can be invested, (2) to ge