Entries for Equity Investments: Less than 20% OwnershipThe following equity investment transactions were completed by Vintage Company during a recent year:Apr.10. Purchased 3,500 shares of Delew Company's common stock for a price of $51.85 per share plus a brokeragecommission of $525. Delew Company has 265,000 shares of common stock outstanding.July8. Received a quarterly dividend of $0.60 per share on the Delew Company investment.Sept. 10. Sold 2,300 shares for a price of $46 per share less a brokerage commission of $290.Dec. 31. At the end of the accounting period, the fair value of the remaining 1,200 shares of Delew Company's stock was $51.50per share.Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar.Apr. 10 - PurchaseJuly 8 - DividendSept. 10 - SaleDec. 31

Journal entry means the entry in prime book with chronological order. Journal entry should have…

Answered: Entries for Equity Investments: Less…

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

Assessing Financial Statement Effects of Trading and Available-for-Sale Securities Use the financial statement effects template to record the following four transactions involving investments in marketable securities. Purchased 6,000 common shares of Liu, Inc., at $12.25 cash per share. Received a cash dividend of $1.50 per common share from Liu. Year-end market price of Liu common stock is $11.25 per share. Sold all 6,000 common shares of Liu for $66,300. Use negative signs with answers, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital (1) Answer Answer Answer Answer Answer (2) Answer Answer Answer Answer Answer (3) Answer Answer Answer Answer Answer (4) Answer Answer Answer Answer Answer Income Statement Revenue - Expenses = Net Income Answer Answer Answer Answer Answer Answer
s
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 140,000 shares of Silva Company directly from one of the founders for a price of $39 per share. Silva has 400,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $406,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $1,259,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. cash/cash dividends/dividend revenue/income of silva company/investment in silva company stock/notes receivable/ a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 fill in the blank 702aed00a020001_2 fill in the blank 702aed00a020001_4 Year 1, July 2 fill in the blank 702aed00a020001_6 fill in the blank 702aed00a020001_8 Year 1, Dec. 31 fill in the blank 702aed00a020001_10…
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 84,000 shares of Silva Company directly from one of the founders for a price of $51 per share. Silva has 300,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $227,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $755,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1.
Follow Up Question Pilsen Company issues 12% bonds with a face value of $10,000 and 600 shares of $10 par common stock in a combined sale, receiving total proceeds of $23,000 on December 31.Required:Record the transaction for each independent assumption shown: 2.The common stock has a current market value of $24.50 per share; the bonds are selling at 98. Can you please explain the calculation and the concept for 'premium on common stock'? 23,000 * 14,700 ($24.5 * 600 shares) / $24,500 (what is this, how do you get this?) - $6,000 Thanks
Entries for equity investments: less than 20% ownership On February 22, Triangle Corporation acquired 2,900 shares of the 100,000 outstanding common stock of Jupiter Co. at $23.80 plus commission charges of $580. On June 1, a cash dividend of $0.60 per share was received. On November 12, 1,000 shares were sold at $29 less commission charges of $120. At the end of the accounting period on December 31, the fair value of the remaining 1,900 shares of Jupiter Company’s stock was $24.50 per share. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. Question Content Area a. Using the cost method, journalize the entry for the purchase of stock. If an amount box does not require an entry, leave it blank. Feb. 22 Investments-Jupiter Co. Stock Investments-Jupiter Co. Stock Cash Cash Feedback Area Feedback Question Content Area b. Using the cost method, journalize the…
Entries for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10. Purchased 11,000 shares of Delew Company’s common stock for a price of $60 per share plus a brokerage commission of $220. Delew Company has 250,000 shares of common stock outstanding. July 8. Received a quarterly dividend of $0.85 per share on the Delew Company investment. Sept. 10. Sold 3,000 shares for a price of $54 per share less a brokerage commission of $90. Dec. 31. At the end of the accounting period, the fair value of the remaining 8,000 shares of Delew Company’s stock was $59.90 per share. Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar.
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 64,000 shares of Silva Company directly from one of the founders for a price of $54 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $157,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $575,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 Year 1, July 2 Year 1, Dec. 31 b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock.
Journalizing Equity Investment Transactions; less than 20% Ownership On January 23, 15,000 shares of Aurora Company's common stock are acquired at a price of $25 per share. On April 12, a $0.50-per-share dividend was received on the Aurora Company stock. On June 10, 6,000 shares of the Aurora Company stock were sold for $31 per share. At the end of the accounting period (December 31), the fair value of the remaining 9,000 shares of Aurora Company's stock was $30 per share. Aurora Company has 200,000 shares of common stock outstanding. Journalize the entries for the purchase of the stock, the receipt of the dividends, the sale of 6,000 shares, and the change in fair value. If an amount box does not require an entry, leave it blank. Jan. 23 Investments-Aurora Company Stock Cash ✓ Apr. 12 Cash Dividend Revenue ✓ Gain on Sale of Investments Investments-Aurora Company Stock June 10 Cash ✓ Dec. 31 Valuation Allowance for Equity Investments Unrealized Gain on Equity Investments Feedback…
Entries for equity investments: 20%-50% ownership On January 4, 20Y4, Ferguson Company purchased 122,500 shares of Silva Company's common stock directly from one of the founders for a price of $37 per share. Silva has 350,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $355,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $1,125,000 for the year. a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. If an amount box does not require an entry, leave it blank. 20Y4, Jan. 4 20Y4, July 2 20Y4, Dec. 31 b. Determine the December 31, 20Y4, balance of Investment in Silva Company Stock. $
Equity Investments: Less than 20% ownership On September 12, 3,300 shares of Denver Company's common stock are acquired at a price of $51 per share plus a $165 brokerage commission. On October 15, an $1.10-per-share dividend was received on the Denver Company stock. On November 10, 1,320 shares of the Denver Company stock were sold for $44 per share less a $66 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,980 shares of Denver Company's stock was $43 per share. Denver Company has 350,000 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 Cash Oct. 15 Cash Dividend Revenue Nov. 10 Cash Loss on Sale of Investments Investments-Denver Company Stock Dec. 31 Unrealized Loss on Equity Investments Valuation Allowance for Equity…
Entries for Stock Investments, Dividends, and Sale of Stock Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 2,000 shares of Tett Co. stock for $80 per share plus a $200 brokerage commission. May 16 Acquired 2,000 shares of Issacson Co. stock for $40 per share plus a $100 commission. July 14 Sold 500 shares of Tett Co. stock for $100 per share less a $50 brokerage commission. Aug. 12 Sold 1,000 shares of Issacson Co. stock for $34 per share less an $80 brokerage commission. Oct. 31 Received dividends of $0.30 per share on Tett Co. stock. Journalize the entries for these transactions under the fair value method. If an amount box does not require an entry, leave it blank. Feb. 24 Investments-Tett Co. Stock fill in the blank 2 fill in the blank 3 Cash fill in the blank 5 fill in the blank 6 May 16 Investments-Issacson Co. Stock fill…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS