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- Ames Corporation repurchases 10,000 shares of its common stock for $12 per share. The shares were originally issued at an average price of $10 per share. Later it resells 6,000 of the shares for $15 per share and the remaining 4,000 shares for $17 per share. How much gain or loss should Ames report on its income statement as a result of these transactions? $38.000 gain $0 $20,000 loss $20,000 loss and $38,000 gainOn February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240 brokerage fee. This purchase represents less than 20% ownership of Lucas Company. On August 22, Lucas paid a dividend per share of $0.42. On November 10, 4,000 shares of Lucas stock were sold for $28 per share less a $160 brokerage fee. Required: Prepare the journal entries for the original purchase, dividend, and sale. If an amount box does not require an entry, leave it blank. Feb. 12 Aug. 22 Nov. 10On January 2, 20Y4, Destiny Company acquired 42% of the outstanding stock of Emerald Company for $350,000. For the year ended December 31, 20Y4 Destiny Company earned income of $200,000 and paid dividends of $25,000. On January 31, 20Y5, Destiny Company sold all of its investment in Emerald Company stock for $400,000. Journalize the entries for Destiny Company for the purchase of the stock, the share of Emerald income, the dividends received from Emerald Company, and the sale of the Emerald Company stock.
- Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a long-term investment for $500,000 cash on July 1. JBI paid $5,000 in total cash dividends on November 1 and reported net income of $100,000 for the year. Prepare Rowan’s entries to record (1) the purchase of JBI shares, (2) the receipt of its share of JBI dividends, and (3) the December 31 year-end adjustment for its share of JBI net income.Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.65 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Ayayai sold the Sigma shares for $34.60 per share. Prepare Ayayai Corporation’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit September 8 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare Ayayai Corporation’s journal entry to record the dividends received. (Credit…On May 1, 20x1, Damage, Inc. declared cash dividends of P20 per share to shareholders of record on May 15, 20x1, for distribution on May 31, 20x1. Hetfield Co. purchases 20,000 Damage, Inc. shares for P200 per share and classifies the shares as investment in FVOCI securities. Requirements: Provide all the entries in May 20x1 under each of the following scenarios: a. Hetfield purchased the shares on May 5, 20x1. b. Hetfield purchased the shares on May 21, 20x1.
- Princeton Company acquired some of the 50,000 outstanding shares of the common stock of CoxCorporation as trading securities. The accounting period for both companies ends December 31.Give the journal entries for each of the following transactions:July 2 Purchased 8,000 shares of Cox common stock at $28 per share.Dec. 15 Cox Corporation declared and paid a cash dividend of $2 per share.31 Determined the fair value of Cox stock to be $29 per shareABC Co purchases 10,000 XYZ Inc., shares for P100 per share on April 9, 20x1. On March 31, 20x1, XYZ Inc. declares cash dividend of P8 per share to shareholders of record on April 15, 20x1. The dividends will be distributed on April 31, 20x1. The investment is measured at FVPL. Requirement: Prepare Journal Entries on April 9 and April 30, 20x1.On January 6, 20Y8, Bulldog Co. purchased 28% of the outstanding common stock of Gator Co. for $245,700. Gator Co. paid total dividends of $28,900 to all NKSHEET.AL... shareholders on June 30, 20Y8. Gator had a net loss of $56,500 for 20Y8. SO Required: GO a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal GO page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. Compute the balance of Investment in Gator Co. Stock on December 31, 20Y8. LANKSHEET.AL... c. How does valuing an investment under the equity method differ from valuing an investment at fair value? Chart of Accounts CHART OF ACCOUNTS Bulldog Co. General Ledger REVENUE ASSETS 410 Sales 110 Cash 611 444 Dntti Cach
- Yonkers Inc. purchases 300,000 of the 1,200,000 shares of Vottle for $1,850,000 on February 9. Vottle acknowledges that Yonkers will have significant influence over their operations. During the year the following transactions occurred: • Vottle declared a dividend of $1.75 per share. • Vottle reported profit for the year of $3,225,000. • Yonkers sold their entire stake in Vottle for $7.50 per share. Record all necessary journal entries for the above transactions (including the purchase).Year 1 January 5 Selk purchased se, eee shares (20% of total) of Kildaire's common stock for $1,500,000. October 23 kildaire declared and paid a cash dividend of $2.40 per share. December 31 Kildaire's net income for the year is $1,112,000, and the fair value of its stock at December 31 is $34 per share. Year 2 October 15 xildaire declared and paid a cash dividend of $3.30 per share. December 31 Kildaire's net income for the year is $1,166,000, and the fair value of its stock at December 31 is $37 per share. Problem 15-6A (Algo) Accounting for long-term investments in stock without significant influence LO P4 Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significant Influence over the investee. No 1 Year 3 Required: Prepare Journal entries to record the preceding transactions and events for Selk. 2 January 2 Selk sold 2% (equal to 1,000 shares) of its investment in Kildaire for $58,000 cash. Answer is not complete.…Draft Co. purchased 14,00 shares of Hamburg Corporation's 40,000 shares of common stock on January. 1. This representd 35% of Hamburgs outstanding shares and gave Drafts Co. significant influence over Hamburgs management and operations. On october 11, Hamburg declared and paid cash dividends of $30,000. On December 31, Hamburg reported net income of $125,000 for the year. Prepare the journal entries Draft Co. should record to account for the dividends receieved and the earning reported by Hamburg Corporation.