Current Attempt in ProgressFollowing is a list of investments owned by Kingbird Ltd., as of the company's year-end, December 31, 2023:InvestmentHFX CorporationFDY Ltd.CTN CorporationDateJan. 15,2024No.Shares Cost1,300 $8.152,5004,100On January 15, 2024, Kingbird sold the shares in CTN Corporation for $7.14 per share.Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensiveincome without recycling method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)FV-OCI Investments7.266.23CashAccount Titles and ExplanationUnrealized Gain or Loss - OCIFairValue$7.147.146.90(To record adjustment to current fair value.)Retained EarningsFV-OCI Investments(To record the sale of shares.)Accumulated Other Comprehensive IncomeDebit00 20Credit][[0][

Other comprehensive income : Other comprehensive income represents the combined net income of a…

Answered: Investment HFX Corporation FDY Ltd. CTN…

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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M4
✓a. $8,500 debit balance B1-35 Fair value adjustment for equity investments; less than 20% ownership Malia Industries owned the following equity investments as of December 31, 20Y3: Issuing Company Jolliff Co. Polich Inc. Shaklee Corporation Cost $ 75,000 50,000 25,000 $150,000 Issuing Company Jolliff Co. Polich Inc. Shaklee Corporation Fair Value $ 82,500 48.300 27,700 $158,500 Each of the preceding equity investments was purchased in 20Y3 and is less than 20% ownership of the issuing company. During 20Y4, Malia Industries did not purchase or sell any of the equity securities. The fair value of the equity securities as of December 31, 20Y4, was as follows: Obj. 2 Cost $ 80,000 45,000 24,500 $149,500 a. What was the balance of Valuation Allowance for Equity Investments as of December 31, 20Y3? b. Journalize the adjustment to fair value for the equity investments as of December 31, 20Y4. c. After the adjustment in (b), what is the balance of Valuation Allowance for Equity Investments?…
CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash P500,000 P500,000 Accounts Payable P450,000 P440,000 Accounts Receivable 250,000 240,000 Mortgage Payable 200,000 220,000 Inventory 155,000 200,000 Ordinary Shares 595,000 - Fixed Assets (Net) 600,000 520,000 Retained Earnings 260,000 - SYANO COMPANY Book Value Fair Value Book Value Fair Value Cash P300,000 P300,000 Accounts Payable P350,000 P340,000 Accounts Receivable 150,000 160,000 Mortgage Payable 200,000 220,000 Inventory 125,000 100,000 Ordinary Shares 250,000 - Fixed Assets (Net) 400,000 420,000 Retained Earnings 175,000 - If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct,…
LL %24 The separate condensed balance sheets of Patrick Corporation and its wholly-owned subsidiary, Sean Corporation, are as BALANCE SHEETS December 31, 2020 Patrick Sean Cash Accounts receivable (net) Inventories Plant and equipment (net) Investment in Sean 24 000'9 000 9 000 00000 000 0 000 $1,400,000 $ 418,000 Total assets 82,000 Accounts payable Long-term debt Common stock ($10 par) Additional paid-in capital Retained earnings 000'8 000 306,000 262,000 000't78 Total liabilities and shareholders' 000 Additional Information: • On December 31, 2020, Patrick acquired 100 percent of Sean's voting stock in exchange for $454,000. • At the acquisition date, the fair values of Sean's assets and liabilities equaled their carrying amounts, respectively, except that the fair value of certain items in Sean's inventory were $20,000 more than their carrying amounts. In the December 31, 2020, consolidated balance sheet of Patrick and its subsidiary, what amount of total assets should be reported?…
P10–32 Earnings per Share with Convertible Securities Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The companies’ balance sheets as of December 31, 20X4, were as follows: Punch Manufacturing Corporation Short Retail Stores Cash $ 50,000 $ 30,000 Accounts Receivable 100,000 80,000 Inventory 260,000 120,000 Land 90,000 60,000 Buildings & Equipment 500,000 300,000 Less: Accumulated Depreciation (220,000) (120,000) Investment in Short Retail Stores 120,000 Total Assets $900,000 $470,000 Accounts Payable $ 40,000 $ 20,000 Bonds Payable 300,000 200,000 Preferred Stock ($10 par value) 200,000 100,000 Common Stock: $10 par value 150,000 $5 par value 100,000 Retained Earnings 210,000 50,000 Total Liabilities & Equity $900,000 $470,000 Short Retail’s 8 percent preferred stock is convertible into 12,000 shares of common stock, and its 10 percent bonds are convertible into 8,000 shares of common stock. Short reported net income of $49,200…
Problem 8
Exercise 15-14 (Algo) Accounting for equity method investments LO P5 Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 67,000 shares of Grecco Company common stock for $576,000 cash. Grecco has 201,000 shares of common stock outstanding, 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 2 June 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 list No 1 2 View journal entry worksheet Date January 2, Year 1 Equity method investments Cash…
k Exercise 11-19A (Algo) Using the P/E ratio LO 11-9 Lake Incorporated and River Incorporated reported net incomes of $164,000 and $124,000, respectively, for the most recent fiscal year. Both companies had 40,000 shares of common stock issued and outstanding. The market price per share of Lake's stock was $57, while River's sold for $61 per share. Required a. Determine the P/E ratio for each company. b. Based on the P/E ratios computed in Requirement a, which company do investors believe has the greater potential for growth in income? Complete this question by entering your answers in the tabs below. Required A Required B Determine the P/E ratio for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. Company Lake, Incorporated River, Incorporated P/E Ratio
Problem 19-4 Per-Share Ratios (LO3, CFA6) You are given the following information for Smashville, Inc. Cost of goods sold: $249,000 Investment income: $2,900 Net sales: $394,000 Operating expense: $92,000 Interest expense: $7,400 Dividends: $13,000 Tax rate: 21 % Current liabilities: $22,000 Cash: $21,000 Long-term debt: $9,000 Other assets: $37,000 Fixed assets: $139,000 Other liabilities: $5,000 Investments: $13,000 Operating assets: $49,000 During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
which company has the lowest capital to debt
Valuation Using the PE Multiple The following table provides summary data for Applied Materials Inc. and its competitors, KLA Tencor Corporation and Lam Research Corporation. (in millions) Applied Materials KLA Tencor Lam Research $20,513 $18,829 $26,202 $27,143 $ 1,145 $ 2,342 $1,176 $2,191 $(941) $1,684 923.8shares 159.3 shares 144.5 shares Company assumed value Equity assumed value NOPAT Net income Net nonoperating obligations (assets) Common shares outstanding a. Compute the price to net income ratio for both KLA Tencor Corporation and Lam Research Corporation. Round answers to two decimal places, when applicable. Price to Net income ratio KLA Tencor Lam Research 16.01 12.39 $3,477 $3,313 $(289) b. Use KLA Tencor Corporation and Lam Research Corporation as comparables, along with the price to net income ratios from part a, and then estimate for Applied Materials its equity intrinsic value, its equity intrinsic value, and its equity intrinsic value per share. • Round equity…
Exercise 12-20 (Algo) Equity method; purchase; Investee Income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the fair value of the shares is $57 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions, (i.e., 10,000,000 should be entered as 10). No 1 Transactions 1 Investment revenue Cash Answer is not complete. General Journal ** Debit 61,000,000 Credit 61,000,000

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Investment HFX Corporation FDY Ltd. CTN Corporation D No. Shares 1,300 2,500 4,100 Cost $8.15 7.26 6.23 Fair Value $7.14 7.14 6.90