On February 2, 10X1, Solo Company purchased 900 shares of Red Corp. Red Corp has a total of 6,000 shares issued. Red Corp. stock was worth $32 a shares. Solo Company also had to pay brokerage fees of 2% of the purchase price. For the year ending December 31, 20X1, Red Corp. earned net income of $240,000 and paid a total dividend of $3,000 to its shareholders. Solo Company really needed some cash, so on March 15, 20X2, it sold 100 shares of Red Corp. stock for $28 a share. Prepare the journal entry for the following dates (show all work): a. February 2, 20X1 b. December 31, 20X1 C. March 15, 20X2

On February 2, 10X1, Solo Company purchased 900 shares of Red Corp. Red Corp has a total of 6,000 shares issued. Red Corp. stock was worth $32 a shares. Solo Company also had to pay brokerage fees of 2% of the purchase price. For the year ending December 31, 20X1, Red Corp. earned net income of $240,000 and paid a total dividend of $3,000 to its shareholders. Solo Company really needed some cash, so on March 15, 20X2, it sold 100 shares of Red Corp. stock for $28 a share. Prepare the journal entry for the following dates (show all work): a. February 2, 20X1 b. December 31, 20X1 C. March 15, 20X2

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

Salt Company reports net income of $360 million for 20X1; the company's tax rate is 40%. At the beginning of the year, 200 million common shares were outstanding. On July 1, Salt sells an additional 80 million shares. On October 1, the company distributed a 10% stock dividend. Rounding to the nearest cent, the company's basic EPS will be $1.80. O $1.20. O $1.17. O $1.36.
On January 1, Bonneau Corp purchased 90,000 shares of Crossley, Inc stock for $50 each. Crossley has 300,000 shares outstanding. On October 1, Crossley pays a cash dividend of .75 per share. On December 31, Crossley reports net income of $650,000 Date JOURNAL Description PR DR Page CR
Hayes Company sold 10,000 shares of Kenyon Co. common stock for $27.50 per share, incurring $1,770 in brokerage commissions. These securities originally cost $260,000. Prepare the entry to record the sale of these securities.
On January 20, Metropolitan Inc. sold 9 million shares of stock in an SEO. The market price of Metropolitan at the time was $41.25 per share. Of the 9 million shares sold, 4 million shares were primary shares being sold by the company, and the remaining 5 million shares were being sold by the venture capital investors. Assume the underwriter charges 5.3% of the gross proceeds as an underwriting fee. a. How much money did Metropolitan raise? b. How much money did the venture capitalists receive? c. If the stock price dropped 2.7% on the announcement of the SEO and the new shares were sold at that price, how much money would Metropolitan receive? a. How much money did Metropolitan raise? After underwriting fees, Metropolitan raised $ million. (Round to two decimal places.)
The Retained earnings account for Nathan Corporation had a credit balance of $800,000 at the end of 20X0. Selected transactions during 20X1 follow: Net income was $130,000. Cash dividends declared were $60,000. Repurchased 100 shares of Nathan Corporation common stock, paying $20 per share. Each share has a $5 par value and was originally issued for $35. Sold 20 shares of Nathan Corporation common stock for $22 each. Required: Calculate Nathan’s retained earnings balance as of the end of 20X1.
On January 1, Star Corp sold 10,000 shares of stock at $26 per share. Later in the year, Star Corp acquired all the shares from the market paying $28 per share. Assuming the cost method is used, what is the debit to common stock from this transaction? (Lesson 12.3) (If you do not know this JE. you should review it.) O a.so Ob. $260,000 OC. $20,000 d.$280.000
1. On January 1 2001, Coca Cola purchased 5,000,000 shares of the outstanding 25,000,000ordinary shares of Royal at P20 per share. The following are the activity that has happened:- On December 31 2001, Royal declared a net income of P50,000,000 for the year. Amemo issuing cash dividends to all shareholders has been sent out.- On December 31 2002, Royal declared a net loss of P10,000,000.00What is Coca Cola's “Investment in Associate” balance in Royal on 31 December 31 2022?2. On January 1 2020, Philippine Airlines purchased 20% of Cebu Pacific's total outstandingordinary shares for two tenths of a billion peos. Net assets of the investee were fairly valuedexcept for one of its BUILDINGS, has a fair value of P5,000,000 greater than its carryingamount. The total carrying amount of all assets is P900,00,000.Assuming the building still has a remaining life of 10 years, how much “INVESTMENTINCOME” is debited to amortize the excess of cost for the year 2020? 3. On January 1, 2019, Tesla…
On February 22, Stewart Corporation acquired 7,500 shares of the 265,000 outstanding shares of Edwards Co. common stock at $39.85 plus commission charges of $1,125. On June 1, a cash dividend of S0.85 per share was received. On November 12, 2,500 shares were sold at $48 less commission charges of $300. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. a. Using the cost method, journalize the entry for the purchase of stock. Feb. 22 Investments-Edwards Co. Stock Cash
Quan Corp. manufactures construction equipment. Feb. 2 Purchased for cash 5,000 shares of Celeste Inc.’s common stock for $20 per share plus a $100 brokerage commission. Celeste Inc. has 87,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.45 per share on Celeste Inc. stock. June 7 Purchased 2,000 shares of Celeste Inc. stock for $27 per share plus a $130 brokerage commission. July 26 Sold 5,900 shares of Celeste Inc. stock for $35 per share less a $110 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.45 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 1,100 shares of Celeste Inc. stock was $31,677. Required: Journalize the entries to record the above selected equity investment transactions completed by Quan during a recent year using the fair value…
Prepare journal entries for Eddington Corp. for the following transactions: 5/25/23: Purchased 3,000 shares of Vistavia Corp. common stock at $30 per share plus $2,700 in brokerage fees. 9/23/23: Sold 500 shares of Vistavia Corp. common stock at $28 per share.
Platinum Corporation bought 160,000 shares of Ore Corporation for P60 each. One month from purchase, Ore declared a 2-for-1 stock split down. Platinum subsequently sold 20,000 shares. During the last month of the reporting period, Ore declared P0.80 dividend per share. How much should Platinum report as dividend income? P112,000 P56,000 P240,000 P48,000
Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at a price of $22 per share plus a $240 brokerage fee. On April 22, a $0.42- per-shares dividend was received on the Gilbert Co. stock. On May 10, 4,000 shares of the Gilbert Co. stock was sold for $28 per share less a $160 brokerage fee. What accounts would be credited on February 12 for the purchase of the 6,000 shares of Gilbert Stock? DATE DESCRIPTION PREF DEBIT CREDIT Feb. 12 (?) $132,240 (?) $132,240 Investments – Gilbert Co. Stock Dividend receivable Cash Dividend revenue