What was the balance in the investment in Lennon co. Account found in the financial records of pacer as of December 31, 2013? On January 1, 2013, Pacer Company paid $2,020,000 for 60,000 shares of Lennon Co.'svoting common stock which represents a 35% investment. No allocation to goodwill orother specific account was made. Significant influence over Lennon was achieved by thisacquisition. Lennon distributed a dividend of $3.00 per share during 2013 and reported anet income of $820,000.What was the balance in the Investment in Lennon Co. account found in the financialrecords of Pacer as of December 31, 2013?a) $2,207,000b) $2,027,000c) $2,702,000d) $2,127,000e) $1,920,000

Step 1: Introduction to the Common StockCommon stock represents the ownership of an investor in the…

Answered: On January 1, 2013, Pacer Company paid…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 18P

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On January 1, 2017, Rama Corporation paid $150,000 for 30% of Samer Company's stock. Rama reported a net income of $25,000 in 2017, paid out $10,000 in dividends, and the annual amortization was $1,000 due to the undervaluation of the buildings (F.V> B.V). Rama uses the equity method. What is the balance of investment in Samer Company that will be reported on December 31, 2017? a. $157,500 O b. $153,500 O c. $150,000 d. $153,400
On July 1, 2015, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding ordinary shares for P200 per share. On December 15, 2015, Eagle paid P400,000 in dividends to its share ordinary shareholders. Eagle's net income for the year ended December 31, 2015 was P1,200,000, earned evenly throughout the year. In its 2015 income statement, what amount of income from the investment should Denver report?a. 360,000b. 180,000c. 120,000d. 60,000
General Accounting
On December 31, 2014, Zeus Company showed shareholders' equity of P4,000,000. During the current year, the shareholders' equity was affected by: * An adjustment to retained earnings for overstatement of inventory on December 31, 2013 in the amount of P200,000. * Declared dividend of P400,000 of which P300,000 was paid in 2014. * The share capital was split five for one. * Net income for the year amounted to P700,000. * The share capital of P3,000,000 remained unchanged during the year. What is the retained earnings balance on January 1, 2014?
On December 31, 2015, Raja Corporation's balance sheet reported the following: The following transactions occurred during 2016: (a) Raja Corporation purchased 1,000 shares at $30 per share to be held as treasury stock. (b) Sold 600 shares of treasury stock for $37 per share (c) Sold the remaining shares of treasury stock at $28 per share. Instructions Prepare the necessary journal entries for Raja Corporation to record the above transactions. Raja Corporation uses the cost method of accounting for treasury stock. Account Debit Credit (a) (b) (c)
On June 30, 2015, Gell-O Corp paid USD48 per share for 50,000 shares, representing a 25% ownership interest in Migs Company, plus broker's fees of USD3. On December 20, 2015, Miggs Company declared and paid USD5 dividends per share to shareholders, and reported a net income of USD2,240,000 for 2015 (earned equally all throughout 2015). On December 31, 2015, what was the balance of the investment in Miggs Company?
On January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 45% 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 2012
NEED Answer please General Accounting
On January 1, 2017 Del-V Company had a retained earnings balance of $206,000. During 2017, the following events occurred: 1. Treasury stock (ordinary) was acquired at a cost of $14,000. The law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements. 2. Cash dividends totaling $9,000 and share dividends totaling $6,000 were declared and distributed. 3. Net income was $58,000. 4. Two thousand shares of callable preference shares were recalled and retired at a price of $150 per share. This share had originally been issued at $130 per share. 5. A material error in net income for a previous period was corrected. This error correction decreased retained earnings by $12,600 after a related income tax credit of $5,400. Required: 1. Prepare a statement of retained earnings for the year ended December 31, 2017. 2. Prepare a note to disclose the restriction of retained earnings.
At the beginning of 2013, U Company had retained earnings of P250,000. During the year U reported net income of P100,000, sold treasury stock at a “gain” of P36,000, declared a cash dividend of P60,000, and declared and issued a small stock dividend of 3,000 shares (P10 par value) when the fair value of the stock was P20 per share. The amount of retained earnings available for dividends at the end of 2013 was?
On December 31, 2014, Bradshaw Corporation had $485,000 as an ending balance for its retained earnings account. During 2015, the corporation declared a $3.50/share dividend to its stockholders. The company has 35,000 shares of common stock outstanding. When the books were closed for 2015 year end, the corporation had a final retained earnings balance of $565,000. What was the net profit earned by Bradshaw Corporation during 2015?
December 31, 2013, Melissa Company showed shareholders' canny of P5,000,000. The share capital of P3,000,000 remained unchanged during the year. Transactions during the year which affected the equity were: An adjustment of retained earnings for 2012 over-depreciation - 100,000; Gain on sale of treasury shares - 300,000; Dividend declared, of which P400,000 was paid - 600,000; Net income for 2013 - 800,000. What is the balance of retained earnings on January 1, 2013?

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