Please don't provide answer in image format thank you iSavedor Not to BeHelp SavOn March 31, 2021, Chow Brothers, Inc., bought 7% of KT Manufacturing's capital stock for $52.7 million. KT's net income for the yearended December 31, 2021, was $80.9 million. The fair value of the shares held by Chow was $36.8 million at December 31, 2021. KTdid not declare or pay a dividend during 2021.Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30.9 million. Prepare the journal entries to record the sale.

Investment in a company in the form of stock refers to the purchase of shares or ownership stakes in…

Answered: On March 31, 2021, Chow Brothers, Inc.,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 23E

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Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
On March 31, 2021, Chow Brothers, Inc., bought 8% of KT Manufacturing’s capital stock for $51.5 million. KT’s net income for the year ended December 31, 2021, was $80.5 million. The fair value of the shares held by Chow was $36.0 million at December 31, 2021. KT did not declare or pay a dividend during 2021. Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30.5 million. Prepare the journal entries to record the sale.
On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’s net income for the year ended December 31, 2021, was $80 million. The fair value of the shares held by Chow was $35 million at December 31, 2021. KT did not declare or pay a dividend during 2021.Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30 million. Prepare the journal entry Chow would use to record the sale.
es On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $54.8 million. KT's net income for the year ended December 31, 2024, was $81.6 million. The fair value of the shares held by Chow was $38.2 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.6 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5), View transaction list Journal entry worksheet 1 2 3 Record the entry for…
3. On June 13, 2021, Rainy Co. paid P500,000 for 20,000 shares of Niel's ordinary shares and classified these shares as held for trading securities. Rainy does not have the ability to exercise significant influence over Niel. Niel declared and paid a dividend of P0.50 a share to its shareholders in 2021. Rainy reported a net income of P260,000 for the year ended December 31, 2021. The fair value of Niel Co.'s stock on December 31, 2021, is P27 per share. What is the net asset amount attributable to the investment in Niel that will be included on Rainy's balance sheet on December 31, 2021?
On January 1, 2022, Old Corp. paid P500,000 for 20,000 shares of Hannah Corp's ordinary shares and classified these as HFT securities. Old Co. does not have the ability to exercise significant influence over Hannah Corp. Hannah Corp, declared and paid dividend of PO.50 a share to its stockholders during 2022. Hannah reported a Net Income of P260,000 for the year ended 12.31.2022. The fair value of Hannah share on 12.31.2022 is P27/share. What is the net asset amount (includes investment and related market adjustments) attributable to the investment in Hannah Corp. that will be included on Old Corp.'s statement of financial position as at 12.31.2022? ents Select the correct response: es P 579,000 rs P 569,000 P 540,000 P 530,000 ses Continue > 3
On March 31, 2024, Chow Brothers, Incorporated, bought 6% of KT Manufacturing's capital stock for $55.4 million. KT's net income for the year ended December 31, 2024, was $81.8 million. The fair value of the shares held by Chow was $38.6 million at December 31, 2024. KT did not declare or pay a dividend during 2024. Required: 1. Prepare all appropriate journal entries related to the investment during 2024. 2. Assume that Chow sold the stock on January 20, 2025, for $31.8 million. Prepare the journal entries to record the sale. Complete this question by entering your answers in the tabs below. Required 1 Prepare all appropriate journal entries related to the investment during 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Required 2 Journal entry worksheet
P4. On December 31, 2021, the carrying amount of the investment is ABC Company purchased 25% of the ordinary shares of CBA Company. The investment in associate has a carrying amount of P1,000,000 at December 31, 2019. For years 2020-2023, CBA Company didi not declare any dividends. CBA Company reported the following results of operations: Profit/ (Loss) (3,000,000) 2020 2021 (1,500,000) 2022 500,000 2023 1,000,000
On January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for P50,000 cash. A company accounts for the investment using the cost method. B's net income for 2021 is P20,000, but it declares no dividends. In 2022 B's net income is P80,000, and it declares dividends of P120,000. What is the correct balance of A's investment in B account at December 31, 2022?
On December 15, 2021, Blue Company paid $100,000 for 8,000 shares of Marble Company common stock. The ownership in Marble Company is 10%. Marble reported net income of $64,000 for the year ended December 31, 2021. The fair value of the Marble stock on that date was $54 per share. What amount will be reported in the balance sheet of Blue Company for the investment in Marble at December 31, 2021? Multiple Choice There is no correct answer. $387,000. $357,000. $372,000. $432,000.
On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’snet income for the year ended December 31, 2018, was $80 million. The fair value of the shares held by Chow was$35 million at December 31, 2018. KT did not declare or pay a dividend during 2018.Required:1. Prepare all appropriate journal entries related to the investment during 2018.2. Assume that Chow sold the stock on January 20, 2019 for $30 million. Prepare the journal entry Sanbornwould use to record the sale.
Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…

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