On January 15 of the current year, Thomas Company purchased 2,800 shares of Dillon Company at a price of $23 per share plus a $140 brokerage commission. On April 10, Thomas Company subsequently sold 1,600 shares of Dillon Company for $20 per shares less a $100 brokerage commission. Determine the loss on sale of investment. Group of answer choices $5,040 $4,980 $5,840

On January 15 of the current year, Thomas Company purchased 2,800 shares of Dillon Company at a price of $23 per share plus a $140 brokerage commission. On April 10, Thomas Company subsequently sold 1,600 shares of Dillon Company for $20 per shares less a $100 brokerage commission. Determine the loss on sale of investment. Group of answer choices $5,040 $4,980 $5,840

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

Instructions At a total cost of $6,950,000, Herrera Corporation acquired 229,500 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 850,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. Required: A. Journalize the entries by Herrera Corporation on December 31 to record the following information (refer to the Chart of Accounts for exact wording of account titles): 1. Tran Corp. reports net income of $974,000 for the current period. 2. A cash dividend of $0.28 per common share is paid by Tran Corp. during the current period. B. Why is the equity method appropriate for the Tran Corp. investment?
ACE Ltd has an outstanding shares of 10,000,000 shares. Kimmy Ltd purchases 100,000 shares of ACE Ltd at $4 per share. Transaction cost is $1,000. How much will the company capitalise if the investment is classified at fair value through OCI? Choose one of the following answers. 401,000 None of the above 399,000 400,000
x Your answer is incorrect. Inspirational Corporation (IC) purchased 2,000 shares of Dalmation Corporation (DC). representing a 10% ownership interest. The company intended to hold this Investment for a number of years and accounted for the investment using the cost model. IC received a cash dividend of $2 per share from DC. The entry to record the dividend in IC's book includes a credit to Long-term Investments for $4,000. credit to Dividend Income for $4,000. debit to Long-term Investments for $4,000. debit to Dividend Income for $4,000.
Types of Debts Amounts Administrative expenses Government claims to unpaid taxes Salary during last month owed to Mr. Key and Ms. Rankin
Caroline Corporation had the following investment at FVTPL at the beginning of the current year: Fair ValueXYZ Corporation, 10,000 shares (originally cost P1,000,000) - P1,200,000DEF Company, 20,000 shares (originally cost P500,000) - 450,000During the current year, the following transactions occurred: Feb. 28 XYZ Corporation declared a 3-for-2 share split.Apr 31 DEF Company declared a 20% share dividend. The market value of DEF Company on this dateis P3.00. June 30 Sold 5,000 shares of DEF Company for P100,000, less brokers fee of P1,000.July 31 Sold 5,000 shares of XYZ Corporation for P135.Sept 30 Received share rights to purchase one share of XYZ Corporation for P100 per share. Thecompany should tender five rights for every share acquired. The market price of XYZCorporation shares on this date is P140.Oct. 31 Exercise all the share rights from XYZ Corporation. Dec. 31 The…
Instructions ait of AC Journal On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of Edwards Co. common stock at $42 plus commission charges of $170. On June 1, a cash dividend of $1.85 per share was received. On November 12, 3,100 shares were sold at $49 less commission charges of $165. Using the cost method, journalize the entries for (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of 3,100 shares. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
Juniper Inc. acquired a 25% interest in Saturn Co. on January 1, 2021, for $260,000. During 2021, Saturn reported net income of $86,000, and paid a total cash dividend to shareholders in the amount of $16,000. Juniper uses the equity method to account for this investment. At the end of 2021, Juniper will report the following debit balance in the investment account: Question 6 options: $285,500 $260,000 $277,500 $281,500
please solve with working On January 3, 2024, Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has significant influence over Thomas. During 2024, Thomas reported net income of $300,000 and paid dividends of $100,000. On January 4, 2025, Roberts sold 15,000 shares for $800,000. What was the balance in the investment account before the shares were sold?
Vala
Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $88,600 and declared dividends of $20,600 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $ Previous Next 3:23 PM a 53 F Sunny 12/14/2021 2.
None
On December 31, 2014, Hubble Corp. has the following securities in its portfolio of temporary investments: Cost Market 5,000 common shares of Orion Corp. $ 82,500 $ 90,500 10,000 common shares of Rigel Ltd. 90,000 84,500 $172,500 $175,000 On May 1, 2015, Hubble purchased 500 common shares of Aries Corp. @ $50.25 each plus 6.0% brokerage fee. On July 1, 2015 Hubble received dividends totalling $4,250 from their portfolio investments. On December 31, 2015, Hubble’s portfolio of trading equity securities reported the following market values: 5,000 common shares of Orion Corp. $ 71,600 10,000 common shares of Rigel Ltd. 98,500 500 common shares of Aries Corp. 27,750…