Want answer Global Inc. bought 18,000 shares of Creative Co.'s stock for$245,000 on June 8, 2012, classified as available for sale.Market value declined to $142,000 by December 31, 2012.Global reclassified this as trading securities in December 2013when market value rose to $198,000.What effect on 2013 income should Global report for CreativeCo. shares?

Concept of Available-for-Sale (AFS) SecuritiesAvailable-for-Sale (AFS) Securities are financial…

Answered: Global Inc. bought 18,000 shares of…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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Lyon Company shows the following condensed income statement information for the year ended December 31, 2019: Lyon declared dividends of 6,000 on preferred stock and 17,280 on common stock. At the beginning of 2019, 10,000 shares of common stock were outstanding. On May 1, 2019, the company issued 2,000 additional common shares, and on October 31, 2019, it issued a 20% stock dividend on its common stock. The preferred stock is not convertible. Required: 1. Compute the 2019 basic earnings per share. 2. Show the 2019 income statement disclosure of basic earnings per share. 3. Draft a related note to accompany the 2019 financial statements.
Global Inc. bought 18,000 shares of Creative Co.'s stock for $245,000 on June 8, 2012, classified as available for sale. Market value declined to $142,000 by December 31, 2012. Global reclassified this as trading securities in December 2013 when market value rose to $198,000. What effect on 2013 income should Global report for Creative Co. shares? correct answer
What effect on 2013 income should global report for creative co shares?
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At December 31, 2016, Paste Company had 30,000 shares of P100 par, 5% cumulative preference share outstanding. No dividends were in arrears as of December 31, 2014, Paste did not declare dividends during 2015. During 2016, Paste paid a cash dividend of P100,000 on its preference share. Paste should report dividends in arrears in its 2016 financial statements as a/an A. accrued liability of P150,000B. disclosure of P150,000C. accrued liability of P200,000D. disclosure of P200,000
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Kristopher Company began operations in 2014. At 12/31/22, Kristopher had a debit balance of $25,000 in its Allowance for Adjustment to Market. At January 1, 2022, Kristopher owned the following securities, accounted for using the fair value method. Cost MJO Common (25,000 shares) $550,000 JKH Preferred (1,900 shares) 199,500 EKH Common (7,500 shares) 82,500 During 2022 the following events occurred: 4/3/22 Sold 3,000 shares of MJO for $75,000. 9/6/22 Acquired 1,500 shares of WVO Common for $25 per share. At 12/31/22, the fair values for Kristopher’s securities were: MJO Common, $24 per share JKH Preferred, $103 per share EKH Common, $13 per share WVO Common, $27 per share Required: Prepare any journal entries required in 2022 to record the securities activity, including any required adjusting entries at 12/31/22. Show any calculations.…
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