Review the following long-term, equity security transactions of Stocking Department Stores:V O (Click the icon to view the transactions.)Requirement1. Journalize the long-term, oquity security transactions of Stocking Department Stores.a. Purchased 440 shares of Jefferson Fine Foods common stock at $31 per share (less than 10% of Jefferson's outstanding stock), with the intent of holding the stockfor the indefinite future. (Record debits first, then credits. Exclude explanations from any journal entries.)Journal EntryAccountsDebitCreditIr ffMore infoa. Purchased 440 shares of Jefferson Fine Foods common stock at $31 pershare (less than 10% of Jefferson's outstanding stock), with the intent ofholding the stock for the indefinite future.b. Received a cash dividend of $1.70 per share on the Jefferson investment.c. At year-end, adjusted the investment account to fair value of $36 per share.d. Sold the Jefferson stock for $26 per share.

Investment Accounting: When money is used to purchase an investment instrument, the accounting for…

a. Purchased 440 shares of Jefferson Fine Foods common stock at $31 per share (less than 10% of Jefferson's outstanding stock), with the intent of holding the stock for the indefinite future. b. Received a cash dividend of $1.70 per share on the Jefferson investment. c. At year-end, adjusted the investment account to fair value of $36 per share. d. Sold the Jefferson stock for $26 per share.

a. Purchased 440 shares of Jefferson Fine Foods common stock at $31 per share (less than 10% of Jefferson's outstanding stock), with the intent of holding the stock for the indefinite future. b. Received a cash dividend of $1.70 per share on the Jefferson investment. c. At year-end, adjusted the investment account to fair value of $36 per share. d. Sold the Jefferson stock for $26 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please do not give image format
A owns 50 X Corp. common shares with an adjusted basis of 20,000. B owns 50 X common shares with an adjusted basis of 75,000. X has earnings and profits of 30,000 accumulated as of the end of the prior year. For the current year, X has taxable income of 85,000 just from operations. IN ADDITION, X has received IBM dividends of 10,000. Also (in addition to the operating income), note that X has engaged in a like-kind exchange in which X had a realized gain of 35,000 and a recognized gain of 0. Also (in addition to operating income) note that X has an net operating loss deduction in the current year (carried from a prior year) of 15,000. X distributes 100,000 to each A and B (i.e. A receives 100,000 and B receives 100,000). Describe all of the consequences to all of the parties.
Mando, manager of XXX Domestic Corporation, received a stock option from the corporation entitling him to buy 5,000 shares of XXX at P10.00 per share. After some time, Mando exercised his option when the shares were selling at P15.00 per share. The shares, at the time of exercise, had a book value of p12.00 per share. After 3 months, Mando sold the shares for P18.00 per share. Compute the compensation income of Mando. * P50,000 O P40,000 P25,000 O P15,000
On February 11, Year 1, an individual 100 shares of stock at $10 per share. On June 11, Year 2, the individual sold the same 100 shares at $7 per share. What is the character of gain or loss on the sale? $300 long-term capital gain. $300 long-term capital loss. $300 short-term capital gain. $300 short-term capital loss
on January 1, T purchased both a bond and stock of CorporationX. The bond was purchased for $10,000, had a face value of $10,000 and paid 10% interest on December 31 of each year. The stock was purchased for $10,000 and paid a dividend of $1,000 on December 31. T sold both the stock and bond on July 1 of the same year. The bond sold for $10,300 and the stock for $11,000. What income, gain or loss, including character type (eg capital gain, interest, dividend, ordinary will T recognize as a result of the sales?
Princeton Company holds a 40 percent interest in shares of Yale Company common stock. On June 19 of the current year, Princeton sells part of this investment. What accounting should Princeton make on June 19? What accounting will Princeton make for the remainder of the current year?
HET purchased 80% of the 10,000 outstanding shares LNET had on Jan. 1, 2019 for $300,000 cash. On that day, LNET had 10,000 preferred shares, 4% cumulative, redeemable at a price which is $1 higher than the cost, and dividends were one year in arrears. HET did not own any of those preferred shares. Both companies have Dec. 31 as the reporting day. LNET reported the followings: Common shares: $180,000 on Jan 1, 2019 $40,000 on Jan 1, 2019 Retained earnings: $80,000 on Jan 1, 2019 $70,000 for 2019 Dividends declared: $6,000 on Dec 30, 2019 Preferred shares: Net income: Assume: the entity theory is used. 7) What is the total acquisition differential on Jan. 1, 2019?
Shaylash bought 250 shares of stock at $31.38 per share. Several months later he sold the stock at $45.65 per share. His broker charges 4% commission for round lots and 5% for odd lots. Calculate the gain or loss on the transaction. (Show loss in parentheses)
52) Brett, a 50% owner of Atlas Corporation's common stock, receives a distribution of a new class of Atas preferred stock having a $40,000 FMV. Bret's basis in the Atlas common stock is $30,000 Its FMV . $80,000 on the distribution date. One year later the corporation redeems the preferred stock for $75,000 At the time the stock was issued, the corporation's current and accumulated E&P was $80,000. At the end of the year of redemption the current and accumulated E&P is $25,000. No other distributions out of E&P were made in the year of redemption What are the tax consequences of the transaction?
Do not give answer in image
am. 115.
Allen transfers marketable securities with an adjusted basis of $120,000, fair market value of $300,000, for 85% of the stock of Heron Corporation. In addition, he receives cash of $40,000. Allen recognizes a capital gain of $40,000 on the transfer. True O False