Exercise 15-14 (Algo) Accounting for equity method investments LO P5Listed below are a few events and transactions of Kodax Company.Year 1January 2 Purchased 67,000 shares of Grecco Company common stock for $576,000 cash. Grecco has 201,000 shares of common stockoutstanding, and its activities will be significantly influenced by Kodax.September 1 Grecco declared and paid a cash dividend of $1.00 per share.December 31 Grecco announced that net income for the year is $515,400.Year 2June 1 Grecco declared and paid a cash dividend of $1.50 per share.December 31 Grecco announced that net income for the year is $747,900.December 31 Kodax sold 14,000 shares of Grecco for $180,eee cash.Prepare journal entries to record the above transactions and events of Kodax Company.Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount.View transaction listNo12View journal entry worksheetDateJanuary 2, Year 1 Equity method investmentsCashSeptember 1, Year1CashGeneral JournalwwwDebit576,00067,000Credit576,000

Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Answered: Exercise 15-14 (Algo) Accounting for…

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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Question 1: Relates to Chapter 2 - Investments in Equity Securities Baskin purchased 20,000 common shares (20%) of Robbin on January 1, Year 5, for $275,000 and classified the investment as FVTPL. Robbin reported net income of $85,000 in Year 5 and $90,000 in Year 6, and paid dividends of $40,000 in each year. Robbin’s shares were trading at $16 per share on December 31, Year 5, and January 1, Year 6. On January 1, Year 6, Baskin obtained significant influence over the operating, investing, and financing decisions of Robbin when the controlling shareholder sold some shares in the open market and lost control over Robbin. Accordingly, the investment in Robbin was reclassified to an investment in associate. On December 31, Year 6, Baskin sold its investment in Robbin for $17 per share. Required: Prepare all journal entries for Years 5 and 6 related to Baskin’s investment in Robbin Note: Kindly provide answer in journal entries (proper format) in debit, Credit and Account name…
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…
Question 8 - Equity Huntless Ltd has the following items in its accounting records for the current year: 1. 50,000 $3 issued and paid up ordinary shares 2. Dividends declared and paid during the year $35,000 3. Transfer from Retained earnings to General reserve $12,000 4. Net profit for the year $35,000 5. Opening Retained earnings $50,000 Required: Prepare journal entries to record items 1,2 and 3. Date / Accounts Debit Credit Show the note to the financial statements providing details of the movements in the Retained Earnings account during the year.
6 Company A has significant influence by owning 50,000 of the 100,000 shares of Company B common stock. During the current year, Company B earns $700,000 and pays cash dividends of $400,000. Which amount represents the resulting increase in the Equity Investment account? O $150,000 O $200,000 O $350,000 O $550,000
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Effect of financing on earnings per share
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Exercise 14-03 a-b (Video) On January 1, 2020, Oriole Corporation had $1,160,000 of common stock outstanding that was issued at par. It also had retained earnings of $747,500. The company issued 37,500 shares of common stock at par on July 1 and earned net income Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is re Entry" for the account titles and enter 0 for the amounts.) b. No. Account Titles and Explanation a. Par value is $10, and market price is $18. Par value is $5, and market price is $22. b. Debit LINK TO TEXT Credit Click if you would like to Show Work for this question: Open Show Work VIDEO: SIMILAR EXERCISE

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