6.Using the information in #5 above, what are the first two years of depreciation using doubledeclining depreciation?7.Write the entry if a company issues 50,000 shares of its $1 par value common stock for $45 pershare.8. A company buys 20,000 shares of its own stock for $35 per share. Write the entry to record thistransaction.9.The company in #8 above decides to sell all of the shares it purchased (20,000). They sell theshares for $42 per share. Write the entry to record this transaction.10. A company declares a 10% stock dividend when its $1 par value common shares are selling for$62 per share. The company has 400 million authorized shares; 1,456,000 issued shares; and1,200,000 outstanding shares. Write the entry to record the stock dividend.11. A company issues 10,000 shares of its 5% $20 callable preferred stock for $58 per share. Writethe entry to record this transaction.

8. Journal Entry to Record Purchase of Own Stock:Debit: Treasury Stock (20,000 shares × $35 per…

Answered: 6. Using the information in #5 above,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oman Oil Company purchased 1,000 shares of Petroleum Company at OMR 0.100 per share as Available for Sale investment. At the end of the year, Petroleum shares fair value is at OMR 0.200 per share. How will Oman Oil record the gain or loss? a. Cr Other Comprehensive Income OMR 100 b. Dr Other Comprehensive Income OMR 100 c. Dr Loss OMR 100 d. Cr Gain OMR 100
1. On January 1 2001, Coca Cola purchased 5,000,000 shares of the outstanding 25,000,000ordinary shares of Royal at P20 per share. The following are the activity that has happened:- On December 31 2001, Royal declared a net income of P50,000,000 for the year. Amemo issuing cash dividends to all shareholders has been sent out.- On December 31 2002, Royal declared a net loss of P10,000,000.00What is Coca Cola's “Investment in Associate” balance in Royal on 31 December 31 2022?2. On January 1 2020, Philippine Airlines purchased 20% of Cebu Pacific's total outstandingordinary shares for two tenths of a billion peos. Net assets of the investee were fairly valuedexcept for one of its BUILDINGS, has a fair value of P5,000,000 greater than its carryingamount. The total carrying amount of all assets is P900,00,000.Assuming the building still has a remaining life of 10 years, how much “INVESTMENTINCOME” is debited to amortize the excess of cost for the year 2020? 3. On January 1, 2019, Tesla…
Situation 1: Novak Cosmetics acquired 10% of the 193,000 shares of common stock of Martinez Fashion at a total cost of $14 per share on March 18, 2025. On June 30, Martinez declared and paid $67,500 cash dividends to all stockholders. On December 31, Martinez reported net income of $118,700 for the year. At December 31, the market price of Martinez Fashion was $15 per share. Situation 2: Splish, Inc. obtained significant influence over Seles Corporation by buying 40% of Seles's 30,700 outstanding shares of common stock at a total cost of $8 per share on January 1, 2025. On June 15, Seles declared and paid cash dividends of $38,300 to all stockholders. On December 31, Seles reported a net income of $84,200 for the year. Prepare all necessary journal entries in 2025 for both situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account…
8.On August 20X1, ABC Company bought 10,000 shares of Z Corp at P120,000. Commission and taxes related to the acquisition were P5,000. On Dec 31, 20X1 Z Corp's share had a fair value of P14 per share. Half of the shares were sold at P15 per share. Transaction costs related to the sale were P3,500. ABC Company's investment model is to hold collect and sell.How much is the unrealized gain (loss) at FV change on Dec 31, 20X1? 20,000 15,000 10,000 0
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The owners of a company are planning to sell the business to new interests. The cumulative net earnings for the past 4 years were P6,000,000 including casualty loss of P200,000. The current value of net assets of the company was P16,000,000. Goodwill is determined by capitalizing average earnings at 8%. What is the amount of goodwill? a. P1.450.000 b. P1.550.000 c. P2,215.000 d. P3.375.000
At the beginning of year 1, ABC Company raises $80 million of equity and uses the proceeds to buy a fixed asset. Operating profits before depreciation (all received in cash) are expected to be $50 million in year 1, $55 million in year 2, and $60 million in year 3. The firm pays out all operating profits as dividends and pays no taxes. At the end of year 3, the company terminates and has no remaining value. If the firm’s shareholders expect to earn a 10 percent return, what is the value of the firm’s equity using Discounted Dividend Approach?
25. Help me selecting the right answer. Thank you
On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale
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Dont uplode images in answer Journalize the following: a) Purchased 1200 shares of Spring Corporation common stock at $15 per share plus a brokerage fee of $50. Spring Corporation has 20,000 shares outstanding. b) Purchased an influential interest in Sunshine Co. for $45000 by purchasing 4,800 shares of the 10,000 of the outstanding. c) Received a cash dividend of $.50 per share on the Spring Corporation stock acquired in (a). d) Received a cash dividend of $1.00 per share on the Sunshine Co. stock acquired in (b). e) Sunshine Co. reported net income of 100,000. Recorded the appropriate amount of Sunshine Co. net income using the percentage of stock acquired in (b).

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