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Required Information Exercise 12-17 (Algo) Equity investments; fair value through net income [LO12-5] [The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: Assets: Investment in IBM common shares Less: Fair value adjustment No changes occurred during 2024 in the investment portfolio. $ 1,745, 000 (185, 000) $ 1,560,000 Exercise 12-17 (Algo) Part 3 3. Prepare appropriate adjusting entry(s) at December 31, 2024, assuming the fair value of the IBM common shares was $1,755,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list

Journal entry worksheet < 1 Record the fair value adjustment assuming the fair value of the IBM common shares was $1,610,000. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal

Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the fair value of the shares is $57 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet > 1 2 3 4 Record the investment in Nursery Supplies shares. Note: Enter debits before credits. Transactions 1 General Journal Debit Credit >

Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 8 million shares for $62 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $48 million and distributed cash dividends of $2.50 per share. At the end of the year, the fair value of the shares is $58 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). No 1 2 3 4 Transactions 1 2 3 4 X Answer is not complete. General Journal Gain on investment (NI) X Cash Cash Debit 62✔ 12✔ 20 x 2 x Credit 62 12✔ 20 x 2 x

Exercise 12-20 (Algo) Equity method; purchase; Investee Income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the fair value of the shares is $57 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions, (i.e., 10,000,000 should be entered as 10). No 1 Transactions 1 Investment revenue Cash Answer is not complete. General Journal ** Debit 61,000,000 Credit 61,000,000

Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 20% of Nursery Supplies Incorporated's 20 million shares for $69 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.50 per share. At the end of the year, the fair value of the shares is $65 million. L Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered 10). View transaction list Journal entry worksheet 1 2 3 Record the inve Note: Enter debits b Transactions No journal entry required Cash Fair value adjustment Gain on investment (NI) Debit Prev…

Required Information Exercise 12-17 (Algo) Equity investments; fair value through net income [LO12-5] [The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: Assets: Investment in IBM common shares Less: Fair value adjustment $ 1,995,000 (210,000) No changes occurred during 2024 in the Investment portfolio. $ 1,785,000 Exercise 12-17 (Algo) Part 1 Required: 1. Prepare appropriate adjusting entry(s) at December 31, 2024, assuming the fair value of the IBM common shares was $1,359,000. Note: If no entry is required for a transaction/event, select "No journal entry required" In the first account field. View transaction list Journal entry worksheet 1 Record the fair value adjustment assuming the fair value of the IBM common shares was $1,359,000. Note: Enter debits before credits. Transaction General Journal Debit Credit

. Exercise 12-20 (Algo) Equity method; purchase; Investee Income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 10 million shares for $65 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $24 million and distributed cash dividends of $0.80 per share. At the end of the year, the fair value of the shares is $61 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet < 1 2 3 4 Record the investment in Nursery Supplies shares.

Required information Problem 15-3A (Algo) Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 [The following information applies to the questions displayed below] Stoll Company's long-term available-for-sale portfolio at the start of this year consists of the following. Cost $530,300 159,210 663,600 Available-for-Sale Securities Company A bonds Company B notes Company C bonds Stoll enters into the following transactions involving its available-for-sale debt securities this year. Fair Value $ 494,000 Problem 15-3A (Algo) Part 1 and 2 154,000 648,160 January 29 Sold one-half of the Company B notes for $78,920. July 6 Purchased Company X bonds for $127,100. November 13 Purchased Company 2 notes for $267,900. December 9 Sold all of the Company A bonds for $522,300. Fair values at December 31 are B, $83,300, C, $604,600, X, $112,000, and Z, $290,000. Required: 1. Prepare journal entries to record these transactions, including the December 31…

Problem 12-13 (Algo) B Equity method [LO12-6, 12-7] Northwest Paperboard Company, a paper and allied products manufacturer, was seeking to gain a foothold in Canada. Toward that end, the company bought 40% of the outstanding common shares of Vancouver Timber and Milling. Inc., on January 2, 2021, for $570 million. At the date of purchase, the book value of Vancouver's net assets was $860 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $10 million for the inventory and by $15 million for the plant facilities The estimated useful life of the plant facilities is 12 years. All inventory acquired was sold during 2021. Vancouver reported net income of $190 million for the year ended December 31, 2021. Vancouver paid a cash dividend of $30 million. Required: 1. Prepare all appropriate journal entries related to the investment during 2021. 2. What amount should Northwest report…

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22 method; ent for ation -6, LO12-7 Fizer Pharmaceutical paid $68 million on January 2, stock. The investment represents a 25% interest in the net assets of Carne and gave significant influence over Carne's operations. Fizer received dividends of $1 per share on December and Carne reported net income of $40 million for the year ended December 31, 2024. The fair value of Carne's common stock at December 31, 2024, was $18.50 per share.azA The book value of Carne's net assets was $192 million. vel The fair value of Carne's depreciable assets exceeded their book value by $32 million. These assets had an average remaining useful life of eight years. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. od; COME Required: Prepare all appropriate journal entries related to the investment during 2024. 000.2 On January 1, 2024, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for…

Exercise 12-22 (Algo) Equity method; adjustment for depreciation [LO12-6, 12-7] Fizer Pharmaceutical paid $85 million on January 2, 2024, for 5 million shares of Carne Cosmetics common stock. The investment represents a 20% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations. Fizer received dividends of $3 per share on December 21, 2024, and Carne reported net income of $35 million for the year ended December 31, 2024. The fair value of Carne's common stock at December 31, 2024, was $35.50 per share. • The book value of Carne's net assets was $210 million. The fair value of Carne's depreciable assets exceeded their book value by $50 million. These assets had an average remaining useful life of ten years. • The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Complete the table below and prepare the appropriate journal entries…

Exercise 12-22 (Algo) Equity method; adjustment for depreciation [LO12-6, 12-7] Fizer Pharmaceutical paid $85 million on January 2, 2024, for 5 million shares of Carne Cosmetics common stock. The investment represents a 20% interest in the net assets of Carne and gave Fizer the ability to exercise significant influence over Carne's operations. Fizer received dividends of $3 per share on December 21, 2024, and Carne reported net income of $35 million for the year ended December 31, 2024. The fair value of Carne's common stock at December 31, 2024, was $35.50 per share. • The book value of Carne's net assets was $210 million. • The fair value of Carne's depreciable assets exceeded their book value by $50 million. These assets had an average remaining useful life of ten years. • The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: Complete the table below and prepare the appropriate journal entries…

Problem 15-7 (ACP) Chaplain Company was very active in acquiring and selling investments in equity securities. Data regarding the securities are: Cost Market value December 31, 2020 Trading securities Securities not held for trading 5,000,000 3,000,000 4,600,000 3,100,000 December 31, 2021 Trading securities Securities not held for trading 5,000,000 3,000,000 5,500,000 3,300,000 The entity made an irrevocable 'election to present changes in fair value of the securities not held for trading in other comprehensive income. Required: Prepare journal entries to recognize the changes in market value for 2020 and 2021.

PROBLEM VII On July 1, 2019, Eya Company acquired 700,000 shares of Agas Company at a price of P13 per share. Eya estimated that the price paid include P1.50 premium in order to gain control over Agas. On this date, the fair values of Agas' identifiable assets and liabilities and their carrying values are given below: Book Value P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 Fair Value P2,000,000 11,000,000 Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings 1. Determine the amount of goodwill.

Required information Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 Skip to question   [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.  Available-for-Sale Securities Cost Fair Value Company A bonds $ 533,600   $ 492,000   Company B notes   159,310     150,000   Company C bonds   661,900     641,950     Stoll enters into the following transactions involving its available-for-sale debt securities this year.  Jan.   29   Sold one-half of the Company B notes for $78,430. July   6   Purchased bonds of Company X for $120,800. Nov.   13   Purchased notes of Company Z for $267,100. Dec.   9   Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000.

Required information Problem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 Skip to question   [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.  Available-for-Sale Securities Cost Fair Value Company A bonds $ 533,600   $ 492,000   Company B notes   159,310     150,000   Company C bonds   661,900     641,950     Stoll enters into the following transactions involving its available-for-sale debt securities this year.  Jan.   29   Sold one-half of the Company B notes for $78,430. July   6   Purchased bonds of Company X for $120,800. Nov.   13   Purchased notes of Company Z for $267,100. Dec.   9   Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000. I'm trying to figure out where am I going wrong at?

47 Problem 1-25 (Algo) (LO 1-4, 1-5, 1-7) Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $372,000 Amortization of excess fair value associated with the 30% ownership is $11,700 per year. In 2021, Lindman earns an income of $106,500 and declares cash dividends of $35,500. Previously, in 2020, Lindman had sold inventory costing $47,600 to Matthew for $68,000. Matthew consumed all but 25 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $59,400 to Matthew for $90,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. a. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? b. What is the equity method balance in the Investment in Lindman…

P 12-9 Securities held-to-maturity; trading securities and equity investments LO12-1, LO12-2, LO12-3,LO12-5 Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1, 2024 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. 2024 Oct. 18 31 Nov. 1 1 Dec. 1 20 21 23 29 31 2025 Jan. 7 Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 30 million shares issued. Received semiannual interest of $1.5 million from the Kansas Abstractors bonds. Purchased 10% bonds of Holistic…

BE 12-10 Equity securities LO12-5 Adams Industries holds 40,000 shares of FedEx common stock, which is not a large enough ownership interest to allow Adams to exercise significant influence over FedEx. On December 31,| 2021, and December 31, 2022, the market value of the stock is $95 and $100 per share, respectively. What is the appropriate reporting category for this investment and at what amount will it be reported in the 2022 balance sheet? BE 12-11 Equity investments and dividends LO12-5 Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on Turner's 2021 financial statements? Explain the reasoning for this effect. BE 12-12 Equity method and dividends LO12-6 Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on Turner's…

ACCT 102 - Please Do Sections C and D.

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Sagar

Dinesh Bhai

roblem 15-3A Debt investments in available-for-sale securities; unrealized and realized gains and losses LO P3 Skip to question   [The following information applies to the questions displayed below.] Stoll Co.'s long-term available-for-sale portfolio at the start of this year consists of the following.  Available-for-Sale Securities Cost Fair Value Company A bonds $ 533,600   $ 492,000   Company B notes   159,310     150,000   Company C bonds   661,900     641,950     Stoll enters into the following transactions involving its available-for-sale debt securities this year.  Jan.   29   Sold one-half of the Company B notes for $78,430. July   6   Purchased bonds of Company X for $120,800. Nov.   13   Purchased notes of Company Z for $267,100. Dec.   9   Sold all of the bonds of Company A for $524,100. The fair values at December 31 are B, $82,500; C, $609,100; X, $118,000; and Z, $279,000.   Problem 15-3A Part 1 and 2 Required:1. Prepare journal entries to…