**Example Exercise: Equity Investments—Less Than 20% Ownership (1 of 2)**1. **Transaction on September 1:** - Acquired 1,500 shares of Monroe Company's common stock at $24 per share plus a $40 brokerage commission.2. **Dividend on October 14:** - Received a $0.60-per-share dividend on the Monroe Company stock.3. **Sale on November 11:** - Sold 750 shares (half of the Monroe Company stock) at $20 per share, less a $45 brokerage commission.4. **End-of-Year Valuation on December 31:** - The fair value of Monroe Company’s stock was $27 per share. - Monroe Company has 175,000 shares of common stock outstanding.- **Journal Entries Required:** - Record the original purchase. - Record the dividend received. - Record the sale of the stock. - Record the change in fair value under the fair value method.Please ensure to journalize these entries accurately.---**Note for Students:** Verify in the chat if you can access these details.

Journal Entry - It is record of every business transaction in day to day life whether it is economic…

Answered: **Example Exercise: Equity…

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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Please answer completely and correctly with explanation computation formula steps answer in text no copy paste show explanation and computation clearly for numbers provide full working for all steps with explanation answer in text form
Required information Problem 15-4A (Algo) Recording, adjusting, and reporting stock investments with insignificant influence LO P4 [The following information applies to the questions displayed below.] Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short- term stock investments with insignificant influence. April 16 Purchased 6,000 shares of Gem Company stock at $29.25 per share. July 7 Purchased 3,000 shares of PepsiCo stock at $51.00 per share. July 20 Purchased 1,500 shares of Xerox stock at $18.00 per share. August 15 Received a $0.85 per share cash dividend on the Gem Company stock. August 28 Sold 3,000 shares of Gem Company stock at $36.00 per share. October 1 Received a $1.90 per share cash dividend on the PepsiCo shares. December 15 Received a $1.00 per share cash dividend on the remaining Gem Company shares. December 31 Received a $1.25 per share cash dividend on the PepsiCo shares. The year-end fair values…
Problem 5 The owners' equity accounts for Alexander International are shown here: $ 40,000 335,000 Common stock ($0.50 par value) Capital surplus Retained earnings Total owners' equity 738,120 $1,113,120 a If Alexander stock currently sells for $25 per share and a 10 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change.
PROBLEM 4 Divina Company reported the following capital balances:Share capital, 20,000 shares, P150 par P 3,000,000Share premium 200,000Retained earnings 1,500,000Divina is considering changing its capital structure through any of the following means:A. Recapitalization is effected, each shareholder receiving 2 shares of new no-par with a stated value of P50 for each share owned.B. A stock split is effected, each shareholder receiving 5 shares, par value P30, for each share owned.C. A recapitalization is effected, each shareholder receiving 1 share of new P100 par value of each share owned.D. Shareholders donate 10% of their shares to the company and these are formally retired.E. A recapitalization is effected, each shareholder receiving 4 new shares of P50 par value for each share owned.F. The par value of shares is to be reduced to P50. 1. Compute for the total share premium after recapitalization under A. 2. Compute for the total share premium after…
eBook Show Me How Question Content Area Equity investments: Less than 20% ownership On September 12, 3,000 shares of Denver Company’s common stock are acquired at a price of $40 per share plus a $300 brokerage commission. On October 15, an $0.80-per-share dividend was received on the Denver Company stock. On November 10, 1,600 shares of the Denver Company stock were sold for $36 per share less a $150 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,400 shares of Denver Company’s stock was $35 per share. Denver Company has 400,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank. Sep. 12 Investments-Denver Company Stock Investments-Denver Company Stock Cash Cash Oct. 15 Cash Cash Dividend Revenue Dividend Revenue Nov. 10…
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Additional Problem 3-5 Suppose that you just short sold 100 shares of Quiet Minds stock for $86.00 per share. Required: a. If the initial margin requirement is 60%, how much equity must you invest? (Round your answer to the nearest dollar) Equity b. Construct the balance sheet that corresponds to the transaction described in requirement a Stock T-bilis Total assets Assets Liabilities and Equity Short position (100 shares) Equity Total liabilities and equity
Pls correct and stepwise
im.3 Answer must be in table format or i will give down vote
please do question 14 d and question 9 a and b
Question 2 You have been appointed as a financial consultant by the directors of Baron Holdings. They require you to determine the cost of capital of the company. The following information is available on the capital structure of the company: ü 1 500 000 ordinary shares, with a market price of R3 per share. The latest dividend declared was 86 cents per share. A dividend growth of 15% was maintained for the past 5 years. ü 1 000 000 11%, R1 preference shares, with a market value of R3 per share. ü R1 000 000 9%, debentures due in 7 years and the current yield-to-maturity is 10%. Note that the current price of the debenture is R951 356 ü R700 000 14%, bank loan, due in December 2021. Additional information: - The company has a tax rate of 30%. - The beta of the company is 1.7, a risk free rate of 5% and the return on the market is 14%. Required: 2.1 Calculate the weighted average cost of capital. Use the Gordon Growth Model to calculate the cost of equity 2.2 Calculate the cost of…
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