A corporation had the following transactions involving stock investments with insignificant influence during the year. Prior to thesetransactions, this corporation had never had any investments.February 16 Purchased 995 shares of HM Corporation stock at $28 per share.February 26 Purchased 695 shares of Tugg Company stock at $20 per share..March 2 Received a $0.60 per share dividend from the HM Corporation.March 28 Sold 330 shares of HM Corporation stock for $32 per share.April 20 Sold 280 shares of Tugg Company stock at $18 per share.December 31 HM stock has a fair value of $31 per share, and Tugg stock has a fair value of $17 per share.Prepare the required journal entries to record these transactions. Also prepare an adjusting entry to record the year-end fair valueadjustment for the portfolio of short-term stock investments.Note: Round to nearest whole dollar.View transaction list View journal entry worksheetNo1DateFebruary 16General JournalDebit22,800CreditANKE

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Answered: A corporation had the following…

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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Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. July 22 Purchased 1, 500 shares of Hunt Corporation at $23 per share. September 5 Received a $2 cash dividend for each share of Hunt Corporation. September 27 Purchased 3, 400 shares of HCA at $21 per share. October 3 Sold 1,500 shares of Hunt at $18 per share. October 30 Purchased 1,300 shares of Black & Decker at $53 per share. December 17 Received a $3 cash dividend for each share of Black & Decker. December 31 Fair value of the short-term stock investments is $143,000.
When March Green Products Ltd. started their business they issued 150,000 common shares and 10,000 noncumulative preferred shares. Their first declaration of dividends happened in Year 4 of operations, and was for $270,000. What was the per share dividend received by the common shareholders? O $142 O $1.6875 O $1.80 O cannot be determined with the information provided
Derr Co. purchases stock investments (with insignificant influence) at a cost of $250 on December 15. This is its first and only purchase of such securities. On December 28, Derr received a $15 cash dividend from the stock investments. At year-end December 31, the stock investments had a fair value of $200. a. Prepare the December 15 purchase entry for stock investments. b. Prepare the December 28 receipt of cash dividends entry. c. Prepare the December 31 year-end adjusting entry for the stock investments' portfolio. d. Explain how each account in entry c is reported in financial statements. e. Prepare the January 3 entry when a portion of its stock investments (that had cost $37) is sold for $40.
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Required information [The following information applies to the questions displayed below.] The following selected transactions occurred for Corner Corporation: Feb. 1 Purchased 510 shares of the company's own common stock at $31 cash per share; the stock is now held in treasury. July 15 Issued 155 of the shares purchased on February 1 for $41 cash per share. Sept. 1 Issued 115 more of the shares purchased on February 1 for $26 cash per share. 3. What impact does the purchase of treasury stock have on dividends paid? Dividends paid on treasury stock.Therefore, the total amount of paid is hen treasury stock is purchased.
Rogers & Hart formed a corporation and had the following organization costs and stock transactions during the year: Transactions: June 30 Incurred the following costs of incorporation: Incorporation fees $ 900 Attorneys’ fees 6,000 Promotion fees 8,000 July 15 Issued 8,000 shares of $10 par common stock for $82,000 cash. Aug. 1 Received subscriptions for 10,000 shares of $10 par common stock for $101,500. 15 Issued 10,000 shares of $10 par common stock in exchange for a building with a fair market value of $104,800. 31 Received a payment of $51,500 for the common stock subscription. Sept. 3 Purchased 1,000 shares of its own $10 par common stock for $11 a share. 18 Received the balance in full for the common stock subscription and issued the stock. 30 Sold 500 shares of its treasury stock for $11.70 a share. Oct. 15 Issued 4,000 shares of $25 par, 8% preferred stock in exchange for land with a fair market value of $105,000. 31 Sold…
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Concord Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Concord does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Concord' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (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 titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit (a) (b) (c)
Flint Corporation purchased 2,500 shares of its $10 par value common stock for $167,500 on August 1. It will hold these shares in the treasury until resold. On December 1, the corporation sold 1,500 shares of treasury stock for cash at $75 per share. Journalize the treasury stock transactions. (List all debit entries before credit entries. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation eTextbook and Media Debit Credit
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