On January 1, 2020, Keith Company paid $96,000 for 8,000 shares of Jerry Company common stock. The ownership in Jerry Company is 10% and this is the only stock investment held by Keith. Jerry reported net income of $52,000 for the year ended December 31, 2020. Jerry declared and paid dividends of $.50 per share during the year ended December 31, 2020. Finance.yahoo.com reports that the fair value of the Jerry stock on December 31, 2020 was $25 per share. 5. What amount will be reported in the balance sheet of Keith Company for the investment in Jerry at December 31, 2020? a. $96,000 b. $97,200 c. $200,000 d. $201,200 6. What total amount will Keith Company report on its 2020 income statement related to the investment in Jerry Company? a. $5,200 b. $4,000 c. $108,000 d. $109,200 7. On January 1, 2021, Keith Company sells all 8,000 of its shares of Jerry Company common stock for $25 per share. How much gain or loss does Keith Company report on its 2021 income statement related to this sale? a. $0 b. $104,000 c. $102,800 d. $98,800

Q: On January 1, 2024, Headlands Ltd., a private company reporting under ASPE, purchased 25% of the…

A: Journal entries form a part of the accounting system, It involves the identification, evaluating,…

Q: On January 1, 2021, AB Company purchased 15,000 shares of C Inc. for P25 per share. A total of…

A: Solution: Purchase cost of shares = 15000*P25 + P15,000 = P390,000 Sale value of shares = 5000*P30 =…

Q: On January 1, 2025, Pina Company paid $765000 for 102000 Blossom Company's outstanding common stock,…

A: To determine the value at which Pina Company should report its investment in Blossom Company on its…

Q: On January 1, 2020, Pennington Corporation purchased 30% of the common shares of Edwards Company for…

A: Account Titles and Explanation Debit Credit Investments - Edwards Company $180,000…

Q: Required: 1. Prepare all appropriate journal entries related to the investment during 2024. Note: If…

A: The company can invest in shares of another company and it is generally accounted for using equity…

Q: Hardstone Inc. had excess cash and invested it in the stock of Softrock, Inc. On August 5, 2021…

A: The excess cash available with the firm can be invested in financial assets for a short-term period…

Q: On January 1, 2025, Vaughn Corporation purchased 20% of the common shares of Bramble Company for…

A: Since, Vaughn purchased 20% shares in the Bramble company, the share of dividend and net income will…

Q: Panthers Corp.purchased 8,000 shares of Canes Corp.for $100 per share on August 1, 2019. As per IFRS…

A: Investments: An investment is considered an asset. It is an amount invested by the investor in PPE…

Q: On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for…

A: Calculate unrealized gain or loss on investment as on December 31, 2020, as follows: The unrealized…

Q: On January 1, 2020 GGB ltd. Had 2,500,000 Class A common shares outstanding. On April 1, the company…

A: Earning per share is the calculation of the earnings of the company attributable to each share of…

Q: An investor company purchased 42,000 of the 100,000 outstanding shares of the investee company's…

A: Equity method is a method of accounting for investments. This method is used when investor has…

Q: Early in its 2023 fiscal year (December 31 year end). Whispering Winds Company purchased 10,700…

A: If an organization opts to record investments under FV-OCI (Fair Value - Other Comprehensive…

Q: On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share.  The…

A: Introduction: If investments in equity shares are less than 20%, then such investment is carried at…

Q: vidends of $ 50,000. Assuming Ryan uses the equity method, at December 31. Gosling reported net…

A: Lets understand the basics.When one entity has 20%-50% holding of another entity then both are known…

Q: On March 31, 2021, Chow Brothers, Inc., bought 6% of KT Manufac ended December 31, 2021, was $81.6…

A: A typical journal entry includes a date, a description of the transaction, and one or more debit and…

Q: Toy Co Corporation purchased 282,000 of the 940,000 common shares of Abacus Ltd. on October 1, 2021,…

A: The Significant influence refers to the opportunity to participate in the formulation of an entity's…

Q: Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for…

A: Equity investment: It refers to the money invested in purchasing the equity shares of a company in…

Q: On January 2, 2019, SurfCity Co. purchased 15,000 shares of Topsail, Inc. for $20 per share. The…

A: Unrealized gain or loss represents the change in the market value of the investment. For equity…

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Sunland Company owns 29000 of the 50000 outstanding shares of Taylor, Inc. common stock. During…

A: Investment revenue is based on the percentage of ownership and the total revenue of the company.…

Q: wnership in Papa Company is 10%. Nana ompany. Papa reported net income of $55, e Papa stock on that…

A: Securities which are held to trading purpose are reported at fair value. Any gain or losses which is…

Q: On November 1, 2021, Romblon Company invested in P600,000 in equity securities representing 20,000…

A: When an asset or any security is sold, they are sold with the expectation to earn gain which can be…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

Q: On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for…

A: The objective of the question is to prepare the journal entries for the investment made by Chow…

Q: On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share. The…

A: As the investment was hold with the intention of sell hence the investment will be classified as…

Q: On June 1, 2024, Blue Company distributed to its common stockholders 140,000 outstanding common…

A: Calculate the gain per share:Market price per share - Book value per share = Gain per share$2.90 -…

Q: On May 12, Year 1, Chewco Co. purchased 2,000 shares of Jedi Inc. for $112 per share, including the…

A: Comprehensive income: The financial items which result in changes in the stockholders’ equity, other…

Q: purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding…

A: The realised gain or loss is the difference between the Fair Value of Stock and Sale Value of Stock…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.