Gardens, Inc. Invests its excess cash in Innovative Technologies, Inc. and acquires 4,100 shares for $27.00 per share. Garden, Inc. owns less than 3% of Innovative's voting stock and plans to hold the stock for two years. Which of the following is the correct journal entry for the transaction? OA. Equity Investments Cash 110,700 110,700 OB. Common Stock - Gardens Cash 110,700 110,700 OC. Cash 110,700 Common Stock - Gardens 110,700 OD. Cash Equity Investments 110,700 110,700

Gardens, Inc. Invests its excess cash in Innovative Technologies, Inc. and acquires 4,100 shares for $27.00 per share. Garden, Inc. owns less than 3% of Innovative's voting stock and plans to hold the stock for two years. Which of the following is the correct journal entry for the transaction? OA. Equity Investments Cash 110,700 110,700 OB. Common Stock - Gardens Cash 110,700 110,700 OC. Cash 110,700 Common Stock - Gardens 110,700 OD. Cash Equity Investments 110,700 110,700

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

Alma Corp. issues 1,040 shares of $9 par common stock at $15 per share. When the transaction is recorded, credit(s) are made to
36. Help me selecting the right answer. Thank you
A company repurchased 10,000 of its outstanding ordinary shares with par value 2$ for 6$ in 5/01/2024, at 31/01/2024 the company re-issued 5000 for 7.5, and in 28/02/2024 issued 4000 for 2.5 which recorded in the company books for: OA. debit retained earning for $6500 OB. debit premium treasury for 6500 OC. debit treasury shares for 10,000 OD. credit treasury premium for 7500
s
Accounting for equity investments On January 6, 20Y8, Bulldog Co. purchased 34% of the outstanding common stock of Gator Co. for $225,000. Gator Co. paid total dividends of $20,000 to all shareholders on June 30, 20Y8. Gator had a net loss of $55,000 for 20Y8. a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. If an amount box does not require an entry, leave it blank. 20Y8 Jan. 6 20Y8 June 30 20Y8 Dec. 31 b. Compute the balance of Investment in Gator Co. Stock on December 31, 20Y8.
Dallas Corporation purchased 300 shares of its own $10 par value common stock for $7,500. Later, these shares are sold for $8,000 cash. The journal entry to record the sale includes a: Select one: a. $500 increase to Paid-in Capital from Treasury Stock b. $4,800 increase to Paid-in Capital from Treasury Stock c. $500 increase to Gain on Sale of Treasury Stock d. None of the above
Subject : Accounting
please prepare the journal entries Q1. Sold 22,500 Treasury shares at $2 each. Q2. Purchased 10% shareholding in Charlie Limited, a supplier, as a long-term investment. The fair value of the 10% shareholding was $2,900,000 as at 1 March. The purchase consideration included a $2,700,000 note receivable due from Charlie Limited and the related interest receivable balance of $144,000, $140,000 cash and a motor vehicle owned by ITI. The motor vehicle was originally obtained at $120,000. ( for depreciation details, refer to Q1 of additional information.) Q3. A 10% share dividend was declared when the market value per share was $2.1. Q4. Paid cash to acquired 30,000 shares of its own at $2.3 each. ITI intends to keep the shares for several months for management bonus.
Subject: accounting
Haskins acquires 100% of Sells on January 1, 2011. Haskins uses the equity method. It is now December 31, 2014. The following are stockholders equity accounts of Sells on various dates. 1/1/11 1/1/14 12/31/14 Common Stock. 120,000 140,000 160,000 Additional Paid in Capital. 2,000,000 2,300,000 2,500,000 Retained Earnings 100,000 130,000 150,000 a. Prepare consolidation worksheet S at December 31, 2014
Do not give solution in image
es On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.6 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5), View transaction list Journal entry worksheet 1 2 3 Record the entry for…