Journalizing equity investment transactions; less than 20% ownershipThe following equity investment transactions were completed by Vintage Company during a recent year:Apr. 10. Purchased 10,000 shares of Delew Company's common stock for a price of $70 per share. Delew Company has 250,000 shares of common stock outstanding.July 8. Received a quarterly dividend of $0.80 per share on the Delew Company investment.Sept. 10. Sold 2,000 shares for a price of $63 per share.Dec. 31. At the end of the accounting period, the fair value of the remaining 8,000 shares of Delew Company's stock was $67 per share.Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank.Apr. 10<July 8Sept. 10Dec. 31000 000 00

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Entries for equity investments: less than 20% ownership Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Feb. 2 Purchased for cash 3,100 shares of Celeste Inc.’s common stock for $32 per share plus a $124 brokerage commission. Celeste Inc. has 80,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.45 per share on Celeste Inc. stock. June 7 Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. July 26 Sold 4,000 shares of Celeste Inc. stock for $41 per share less a $100 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.62 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720.…
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Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 140,000 shares of Silva Company directly from one of the founders for a price of $39 per share. Silva has 400,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $406,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $1,259,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. cash/cash dividends/dividend revenue/income of silva company/investment in silva company stock/notes receivable/ a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 fill in the blank 702aed00a020001_2 fill in the blank 702aed00a020001_4 Year 1, July 2 fill in the blank 702aed00a020001_6 fill in the blank 702aed00a020001_8 Year 1, Dec. 31 fill in the blank 702aed00a020001_10…
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Equity MethodOn January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 35% of The Mayfair Corporation's outstanding common shares. During 2011, Mayfair reported net earnings of $2.25 million and paid a cash dividend of $0.15 per share. During 2012, Mayfair reported a net loss of $180,000 and again paid a dividend of $0.15 per share. Calculate the book value of Miller's investment in Mayfair as of December 31, 2011, and December 31, 2012. 2011 Answer 2012 Answer
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Equity Investments: Less than 20% ownership On September 12, 3,300 shares of Denver Company's common stock are acquired at a price of $51 per share plus a $165 brokerage commission. On October 15, an $1.10-per-share dividend was received on the Denver Company stock. On November 10, 1,320 shares of the Denver Company stock were sold for $44 per share less a $66 brokerage commission. At the end of the accounting period on December 31, the fair value of the remaining 1,980 shares of Denver Company's stock was $43 per share. Denver Company has 350,000 shares of common stock outstanding. Journalize the entries for the original purchase, dividend, sale, and change in fair value under the fair value method. If an amount box does not require an entry, leave it blank. Sep. 12 Investments-Denver Company Stock Cash Oct. 15 Cash Dividend Revenue Nov. 10 Cash Loss on Sale of Investments Investments-Denver Company Stock Dec. 31 Unrealized Loss on Equity Investments Valuation Allowance for Equity…
Entries for Stock Investments, Dividends, and Sale of Stock Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24 Acquired 2,000 shares of Tett Co. stock for $80 per share plus a $200 brokerage commission. May 16 Acquired 2,000 shares of Issacson Co. stock for $40 per share plus a $100 commission. July 14 Sold 500 shares of Tett Co. stock for $100 per share less a $50 brokerage commission. Aug. 12 Sold 1,000 shares of Issacson Co. stock for $34 per share less an $80 brokerage commission. Oct. 31 Received dividends of $0.30 per share on Tett Co. stock. Journalize the entries for these transactions under the fair value method. If an amount box does not require an entry, leave it blank. Feb. 24 Investments-Tett Co. Stock fill in the blank 2 fill in the blank 3 Cash fill in the blank 5 fill in the blank 6 May 16 Investments-Issacson Co. Stock fill…

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