Gioia Company acquired some ofthe 65,000 shares of outstandingcommon stock (no par) ofTristezza Corporation during thecurrent year as a long-terminvestment. The annualaccounting period for bothcompanies ends December 31.The following transactionsoccurred during the current year:Jan. 10 Purchased 17,875 sharesof Tristezza common stock at $11per share. Dec. 31 a. Received thecurrent year financial statementsof Tristezza Corporation thatreported net income of $80,000.b. Tristezza Corporation declareda cash dividend of $0.60 pershare. c. Tristezza Corporationpaid the cash dividend declared in(b). d. Determined the marketprice of Tristezza stock to be $10per share. Required: 2. Preparethe journal entries for each ofthese transactions. (If no entry isrequired for a transaction/event,select "No journal entry required"in the first account field.)

1. Jan. 10 - Purchase of Tristezza StockGioia purchased 17,875 shares of Tristezza Corporation's…

Answered: Gioia Company acquired some of the…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

See similar textbooks

Similar questions

Spartan Corporation redeemed 25 percent of its shares for $2.700 on July 1 of this year, in a transaction that qualified as an exchange under IRC $302(a). Spartan's accumulated E&P at the beginning of the year was $2,700. Its current E&P is $19,900. Spartan made dividend distributions of $2,400 on June 1 and $6,600 on August 31. Determine the beginning balance in Spartan's accumulated E&P at the beginning of the next year. See Revenue Rules 74-338 and 74-339 for help in making this calculation. (Round your intermediate calculations to the nearest whole dollar amount.) Accumulated E&P at the beginning of the next year
Spartan Corporation redeemed 25 percent of its shares for $1,800 on July 1 of this year, in a transaction that qualified as an exchange under IRC §302(a). Spartan’s accumulated E&P at the beginning of the year was $1,800. Its current E&P is $16,300. Spartan made dividend distributions of $2,700 on June 1 and $6,000 on August 31. Determine the beginning balance in Spartan’s accumulated E&P at the beginning of the next year. See Revenue Rules 74-338 and 74-339 for help in making this calculation. (Round your intermediate calculations to the nearest whole dollar amount.)
Subject- accounting
Gonzalez Company acquired $177,000 of Walker Co., 8% bonds on May 1 at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, Gonzalez Company sold $45,600 of the bonds for 97. Journalize entries to record the following in Year 1: For a compound transaction, if an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 Investments-Walker Co. Bonds Cash Feedback a. Record the investment at par and the cash paid. b. The semiannual interest received on November 1. Nov. 1 Cash Interest Revenue
On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24.Following are the data for the following year (Year 2).Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50.Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share.Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities.b. Prepare any adjusting entry needed at December 31, Year 1.Note: If a journal entry isn't required for the transaction, select "N/A—Debit" and "N/A—Credit" as the…
On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24.Following are the data for the following year (Year 2).Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50.Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share.Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 xx d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the Fair Value Adjustment account needs to be adjusted for the investment portfolio on December 31, Year 2.
On 5/1/X2 , Pixco issued shares of its voting common stock in exchange for 60% of Stixco's outstanding common stock as a business combination appropriately accounted for under the purchase method. Both companies have a December 31 year-end. Selected information for each company follows: 14. Pixco Stixco Net income from own separate operations (exclusive of earnings recorded under either the equity method or the cost method): 4 months ended 4/30/X. 8 months ended 12/31/X $2,000,000 $200,000 6,000,000 $8,000,000 500,000 $700,000 Dividends declared: 4 months ended 4/30/X. 8 months ended 12/31/Xa. $ 900,000 $100,000 2,000,000 $2,900,000 300,000 $400,000 Parent's recorded amortization of $70,000 cost in excess of book value for 101. What is the parent's net income for 101 under the equity method? a. $8,230,000 b. $8,350,000 C. $8,410,000 d. $8,480,000 e. None of the above.
On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation 400 shares of common stock (no-par) at $60 per share Keefe Corporation 240 shares preferred stock ($10 par) at $20 per share On December 31, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 80 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the Fair Value Adjustment account needs to be adjusted for the investment portfolio on December 31, Year 2. Date Mar. 2, Year 2…
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 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.
On February 1. Mini Company purchased 1.000 shares (2% ownership) of Win Company common stock for $30 per share. The shares are classified as a short-term investment. On March 20, Mini Company sold 200 shares of Win stock for $5,800. Mini received a dividend of $1 per share on April 25. The fair value of the remaining stock is $26,400 on June 30. The entry to record the appropriate fair value adjustment on June 30 would include a debit to O Urealzed Gain or Lass - Income in the amount of $2,400. 57 167 points O Fair Value Adjustment -Stock in the amount of $2.400. O Unrealized Gain or Loss -Income in the amount of $3,600. O No gain or loss should be recorded because no adlitional shares were sold on June 30. 58 L66 points The Norfolk Pine Co purchased 10.000 shares of Peperomia Ginny, Inc. on July 1 at a cost of $18 per share. On December 1, Norfolk Pine sells 600 shares at a price of $20 per share. Norfolk Pine's entry to record this transaction will include a 0 debit to Common Stock…
Cullumber Company acquired 28% of the outstanding common stock of Grinwold Inc. on January 1, 2020, by paying $1,555,400 for 55,550 shares. Grinwold declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2020. Grinwold reported net income of $859,200 for the year. (a) Your Answer Correct Answer Prepare the journal entries for Cullumber Company for 2020, assuming Cullumber cannot exercise significant influence over Grinwold. (Use the cost method.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (b) Your answer is partially correct. Date Jan. 1 June 30 Dec. 31 Solution List of Accounts Jan. 1 (c2) Date June 30 eTextbook and Media Dec. 31 Dec. 31 Account Titles and Explanation V Stock Investments Your answer is correct. Cash Prepare the journal entries for Cullumber Company for 2020, assuming Cullumber can exercise significant influence over…

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS