QUESTION 3 During the year the company purchased equipment through the issuance of common stock. The stock had a par value of $200,000 and a fair value of $350,000. The fair value of the equipment was not easily determinable. The company incorrectly recorded this transaction as follows: Equipment 200,000 Common Stock 200,000 Provide the entry that the company should have recorded in the form below (omit explanations) Copy the table below and answer in the space provided

QUESTION 3 During the year the company purchased equipment through the issuance of common stock. The stock had a par value of $200,000 and a fair value of $350,000. The fair value of the equipment was not easily determinable. The company incorrectly recorded this transaction as follows: Equipment 200,000 Common Stock 200,000 Provide the entry that the company should have recorded in the form below (omit explanations) Copy the table below and answer in the space provided

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Gg.92.
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
lendocino College| * Chapter 12 Homework * CengageNOwv2 | Onlin X genow.com/ilm/takeAssignment/takeAssignmentMain.do?inprogress%3Dtrue eBook Show Me How Calculator Print Item Issuing Stock Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 100,000 shares of preferred 4% stock, $60 par and 250,000 shares of $25 par common stock. The following selected transactions were completed during the first year of operations: Journalize the transactions. Feb. 5. Issued 125,000 shares of common stock at par for cash. Feb. 5. Feb. 5. Issued 600 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation. Feb. 5. fair market nrices of $77,000, $422,000, and
H1. Account
Presented below is information related to the purchases of common stock by Indigo Company during 2020. Cost(at purchase date) Fair Value(at December 31) Investment in Arroyo Company stock $ 90,000 $ 69,000 Investment in Lee Corporation stock 229,000 279,000 Investment in Woods Inc. stock 188,000 199,000 Total $ 507,000 $ 547,000 (Assume a zero balance for any Fair Value Adjustment account.) (a) What entry would Indigo make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (b) What entry would Indigo make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Indigo did not select the fair value option for these investments? (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…
Presented below is information related to the purchases of common stock by Cheyenne Company during 2020. Cost(at purchase date) Fair Value(at December 31) Investment in Arroyo Company stock $97,000 $76,000 Investment in Lee Corporation stock 266,000 311,000 Investment in Woods Inc. stock 176,000 185,000 Total $539,000 $572,000 (Assume a zero balance for any Fair Value Adjustment account.) (a) What entry would Cheyenne make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (b) What entry would Cheyenne make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Cheyenne did not select the fair value option for these investments? (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…
I got the first two parts, but could you explain to me how to find part C?
Presented below is information related to the purchases of common stock by Lilly Company during 2020. Cost(at purchase date) Fair Value(at December 31) Investment in Arroyo Company stock $100,000 $ 80,000 Investment in Lee Corporation stock 250,000 300,000 Investment in Woods Inc. stock 180,000 190,000 Total $530,000 $570,000 Instructions (Assume a zero balance for any Fair Value Adjustment account.) a. What entry would Lilly make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? b. What entry(ies) would Lilly make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Lilly did not select the fair value option for these investments?
Founded on January 1, 20X1, Gehl Company had the following passive investments in equity securities at the end of 20X1 and 20X2: Equity Security Cost 12/31/X2 Fair Value A $ 96,000 $ 94,000 B 184,000 162,000 C 126,000 136,000 Required: If the company recorded a $4,000 debit to its Fair value adjustment account as its 20X2 fair value adjustment, what must have been the unrealized gain or loss reported at the end of 20X1?
How much is the unrealized gain (loss) accumulated in equity as of December 31, 20x2? Karen Co. purchased the following equity securities on January 1, 20x1 for a total amount of P360,000. Cost Alaska Co. preference shares P200,000 160,000 Valdez Co. ordinary shares Totals P360,000 The shares did not qualify for recognition as held for trading, thus they were classified as investment in equity securities measured at fair value through other comprehensive income. On December 31, 20x1, the portfolio of Karen Co. comprised the following. Fair value - 12/31/x1 Alaska Co. preference shares P240,000 60,000 Valdez Co. ordinary shares Total P300,000 On December 31, 20x2, the portfolio of Karen Co. comprised the following: Fair value - 12/31/x2 Alaska Co. preference shares P220,000 180,000 Valdez Co. ordinary shares Total P400,000 On February 2, 20x3, all of the Alaska Co. preference shares were sold for P160,000 net of transaction costs. 0 100,000 40,000 O (40,000)
Cc.161.
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