On February 22, Triangle Corporation acquired 2,700 shares of the 95,000 outstanding common stock of Jupiter Co. at $41.80 plus commission charges of $540. On June 1, a cash dividend of $0.80 per share was received. On November 12, 900 shares were sold at $50 less commission charges of $108. At the end of the accounting period on December 31, the fair value of the remaining 1,800 shares of Jupiter Company's stock was $42.50 per share. 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. If an amount box does not require an entry, leave it blank. 88 Feb. 22 Investments-Jupiter Co. Stock v Cash v Feedback b. Using the cost method, journalize the entry for the receipt of dividends. If an amount box does not require an entry, leave it blank. June 1 Cash v Dividend Revenue Feedback c. Using the cost method, journalize the entry for the sale of 900 shares. If an amount box does not require an entry, leave it blank. Nov. 12 Cash v Gain on Sale of Investments v

On February 22, Triangle Corporation acquired 2,700 shares of the 95,000 outstanding common stock of Jupiter Co. at $41.80 plus commission charges of $540. On June 1, a cash dividend of $0.80 per share was received. On November 12, 900 shares were sold at $50 less commission charges of $108. At the end of the accounting period on December 31, the fair value of the remaining 1,800 shares of Jupiter Company's stock was $42.50 per share. 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. If an amount box does not require an entry, leave it blank. 88 Feb. 22 Investments-Jupiter Co. Stock v Cash v Feedback b. Using the cost method, journalize the entry for the receipt of dividends. If an amount box does not require an entry, leave it blank. June 1 Cash v Dividend Revenue Feedback c. Using the cost method, journalize the entry for the sale of 900 shares. If an amount box does not require an entry, leave it blank. Nov. 12 Cash v Gain on Sale of Investments v

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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Jackson Company engaged in the following investment transactions during the current year. February 17 Purchased 430 shares of Medical Company common stock for $15 per share plus a brokerage commission of $150. Jackson does not have significant influence over Medical.April 1 Bought 23,000 of the 100,000 outstanding shares of Olde Company for $230,000. Goodwill of $73,000 was included in the price.June 25 Received a $1.30 per share dividend on Medical Company stock.June 30 Olde Company reported second-quarter profits of $13,000.October 1 Purchased 1,300 bonds of Alpha Company for $14 per bond plus a brokerage fee of $330. These bonds are classified as securities available-for-sale.December 31 Medical Company shares are selling for $20 and Alpha bonds are selling for $11.Prepare the appropriate journal entries to record the transactions for the year, including year-end adjustments. Note: If no entry is required for a transaction/event, write "No journal entry required"
Central Investments bought 4,000 shares of Benet Company common stock on January 1, 20X1, for $20,000, and 4,000 shares of Roy Company common on July 1, 20X1, for $24,000. Benet declared dividends on December 31, 20X1 of $3,000. At the end of 20X1, the fair value of Roy was $30,000 and the fair value of Benet was $28,000. At the end of 20X2, the fair value of Roy was $32,000 and the fair value of Benet was $24,000. These investments are reported in the long-term asset section of Central’s balance sheet. Central owns 8% of Benet Company and 12% of Roy Company. How much income was reported on the 20X1 income statement? Multiple Choice $240 $14,240 $14,000 $0
On February 13, Solo Inc. reacquires 50,000 shares of its $1 par value common stock at the current market price of $11. The stock was originally issued for $8. On August 22, Solo reissued the stock for $15. What is the overall effect of the February 13 and August 22 transactions on Solo's financial statements?
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…
On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145 brokerage commission. On April 12, a $0.30-per-share dividend was received on the Tolle Company stock. On June 10, 6,200 shares of the Tolle Company stock were sold for $34 per share less a $130 brokerage commission. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
On May 27, Kick Off Inc. reacquired 3,000 shares of its common stock at $54 per share. On August 3, Kick Off sold 1,700 of the reacquired shares at $57 per share. November 14, Kick Off sold the remaining shares at $53 per share. Journalize the transactions of May 27, August 3, and November 14. For a compound transaction, if an amount box does not require an entry, leave it blank. May 27 Aug. 3 Nov. 14
On May 3, Zirbal Corporation purchased 6,000 shares of its own stock for $66,000 cash. On November 4, Zirbal reissued 950 shares of this treasury stock for $11,400. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock. Record the purchase of 6,000 shares of its own stock for $66,000 cash. Record the reissue of 950 shares of this treasury stock for $11,400.
On February 14, Marine Company reacquired 7,500 shares of its common stock at $30 per share. On March 15, Marine sold 4,500 of the reacquired shares at $34 per share. On June 2, Marine sold the remaining shares at $28 per share. Required: Journalize the transactions of Februaryl4, March 5, and June 2.
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 430,000 shares for $510,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $280,000 and distributed cash dividends of 15 cents per share. At year-end, the fair value of the shares is $538,000. Required: 1. Assume no significant influence was acquired. 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. View transaction list Journal entry worksheet 1 2 3 4 Record the purchase of AMC Supplies shares for $510,000 as a long-term investment. Note: Enter debits before credits. Transactions General Journal Debit Credit
Warhol Company has 2,000 shares of $0.50 par value common shares authorized. On March 1, Warhol sold 1,550 shares for $10 per share. On May 1 of the same year, Warhol reacquired 550 of those shares for $11 each. Over the next several months, the market price of the shares increased and Warhol Company reissued 150 shares at $15 per shares. By December 1, the company reissued the remaining 400 shares. At that time, the market price of the shares had fallen to $9 per share. What is the entry the company would make on December 1st to record the reissue of 400 shares of treasury stock? Responses Cash 3,600 Capital in Excess of Cost - Treasury Stock 400 Retained Earnings 400 Treasury Stock 4,400 Cash…
On December 31, year 1, Neal Co. issued 100,000 shares of its $10 par value common stock in exchange for all of Frey Inc.’s outstanding stock. The fair value of Neal’s common stock on December 31, year 1, was $19 per share. The carrying amounts and fair values of Frey’s assets and liabilities on December 31, year 1, were as follows: Accounts Carrying amount Fair value Cash $ 240,000 $ 240,000 Receivables 270,000 270,000 Inventory 435,000 405,000 Property, plant, and equipment 1,305,000 1,440,000 Liabilities (525,000) (525,000) Net assets $1,725,000 $1,830,000 What is the amount of goodwill resulting…
Marigold Corporation purchased 630 common shares of Ditch Inc. for $12,900 on February 21. Marigold paid a 1% commission on the share purchase and, because the shares were not publicly traded, decided to account for them following the cost model. On June 30, Ditch declared and paid a cash dividend of $1.90 per share. (a) Prepare Marigold 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 O for the amounts. List debit entry before credit entry.) Date Account Titles and Explanation Feb. 21 Debit Credit