ASSETSREVENUE110 Cash410 Sales111 Petty Cash611 Interest Revenue120 Accounts Receivable612 Dividend Revenue121 Allowance for Doubtful Accounts621 Income of Gator Co.131 Notes Receivable631 Gain on Sale of Investments-132 Interest Receivable641 Unrealized Gain on Trading Investments141 Merchandise Inventory145 Office SuppliesEXPENSES146 Store Supplies511 Cost of Merchandise Sold151 Prepaid Insurance512 Bad Debt Expense515 Credit Card Expense161 Investment in Gator Co. Stock516 Cash Short and Over165 Valuation Allowance for Trading Investments520 Salaries Expense166 Valuation Allowance for Available-for-Sale Investments531 Advertising Expense181 Land532 Delivery Expense191 Store Equipment533 Repairs Expense192 Accumulated Depreciation-Store Equipment,534 Selling Expenses193 Office Equipment535 Rent Expense194 Accumulated Depreciation-Office Equipment536 Insurance Expense537 Office Supplies ExpenseLIABILITIESL.1.1 On January 6, 20Y8, Bulldog Co. purchased 28% of the outstanding common stock of Gator Co. for $245,700. Gator Co. paid total dividends of $28,900 to allNKSHEET.AL...shareholders on June 30, 20Y8. Gator had a net loss of $56,500 for 20Y8.SORequired:GOa. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. Refer to thechart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journalGOpage is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.b. Compute the balance of Investment in Gator Co. Stock on December 31, 20Y8.LANKSHEET.AL...c. How does valuing an investment under the equity method differ from valuing an investment at fair value?Chart of AccountsCHART OF ACCOUNTSBulldog Co.General LedgerREVENUEASSETS410 Sales110 Cash611444Dntti Cach

Equity method of valuing investment means to record the investment as per initial cost of investment…

Answered: On January 6, 20Y8, Bulldog Co.…

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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Nash Company obtained land by issuing 2,270 shares of its $10 par value common stock. The land was recently appraised at $115,230. The common stock is actively traded at $49 per share. Prepare the journal entry to record the acquisition of the land. (Credit account titles are automatically indented when 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 all debit entries before credit entries.) Account Titles and Explanation Debit Credit
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…
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Concord Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Concord does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Concord' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) No. Account Titles and Explanation Debit Credit (a) (b) (c)
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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
The following book and fair values were available for Westmont Company as of March 1. Inventory Land Buildings Customer relationships Accounts payable Common stock Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Arturo pays cash of $4,456,250 to acquire Westmont. No stock is issued and Arturo pays $49,800 for legal fees to complete the transaction. View transaction list Prepare Arturo's journal entries to record its acquisition of Westmont. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 Book Value Fair Value $ 644,750 $ 609,000 779,250 1,086,750 1,770,000 2,138,250 842,250 0 (102,000) (102,000) (2,000,000) (500,000) 2 (424,500) (457,000) 289,500 Note: Enter debits before credits. Transaction Record the acquisition of Westmont Company. General Journal Debit Credit >

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