REQUIRED:d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale. 1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment:Number ofCost ofTotalCompanySharesShare$20Cost$ 8,00024,000400B2,000128002217,600These securities are classified as available for sale.

Given that, number of shares sold = 800 cost of shares = $22 per share the sale price of share =…

Answered: REQUIRED: d. On March 14, 2021, Castle…

REQUIRED: d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale.

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

At the beginning of 2022, Rose, Inc. purchased 8000 ordinary shares of Mark, Inc. for $800,000. The shares were designated as FVOCI investment. On July 31, 2022, Rose, Inc. sold all of its Mark, Inc.’s shares for $1,200,000. How much will be closed to Retained Earnings at the end of 2022 as a result of this sale?
During 2022, Roberto sold 830 shares of Casual Investor Mutual fund for $8.875 per share. The shares were purchased on the following dates: Date May 31, 2018 September 18, 2019 October 21, 2019 Shares 400 Price $ 9.375 225 $ 8.500 425 $ 10.000 276 $ 7.125 January 12, 2021 Required: Calculate the gain (loss) on the sale under the following assumptions: a. Basis is calculated using the first-in, first-out method. Note: Round your intermediate computations and final answer to 2 decimal places. b. Basis is calculated using the average cost method (assume all shares are long-term). Note: Round "Average cost" to 3 decimal places. Round other intermediate computations and final answer to 2 decimal places. a b.
Do not give answer in image and hand writing
On February 1, 2019, Wild Bill Corporation repurchases 810 shares of its outstanding common stock for $9 per share. On March 1, 2019, Wild Bill sells 260 shares of treasury stock for $12 per share. On May 10, 2019, Wild Bill sells the remaining 550 shares of its treasury stock for $6 per share. Required: Prepare the journal entries to record these transactions. 2019 Feb. 1 fill in the blank 2 fill in the blank 4 (Record purchase of treasury shares) Mar. 1 fill in the blank 6 fill in the blank 7 fill in the blank 9 fill in the blank 10 fill in the blank 12 fill in the blank 13 (Record reissue of treasury shares) May 10 fill in the blank 15 fill in the blank 16 fill in the blank 18 fill in the blank 19 fill in the blank 21 fill in the blank 22 fill in the blank 24 fill in the blank 25 (Record reissue of treasury shares)
8. On May 15, 2025, Mayer Co. invests $8,000 in John, Inc. stock. John, Inc. pays Mayer Co. a $200 dividend on November 15, 2025. Mayer Co. sells the John, Inc. stock on December 10, 2025, for $7,500. Assume the Mayer Co. does not have significant influence over John, Inc. Journalize the 2025 transactions related to Mayer Co.'s investment in John, Inc. stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Mayer Co.'s initial investment in John, Inc. stock on May 15, 2025. Date May 15, 2025 Accounts and Explanation Debit Credit
February 20, 2020: Lee Ranger purchased 100 shares of Pine Corp. stock for $30 a share. April 7, 2020: Lee sold 50 shares of Pine Corp. stock for $20 a share. April 24, 2020: Lee purchased 25 shares of Pine Corp. stock for $25 a share. What is the basis of the 25 shares purchased on April 24, 2020? $625 $875 $1,125 $750
Flynn Company purchased 70 Rinehart Company 6%, 10-year, $1,000 bonds on January 1, 2020, for $70,000. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Flynn Company sold 40 of the bonds for $38,500. Instructions: Prepare the journal entries to record the transactions described above. E16.4 (LO 2) Hulse Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Wade common stock (2%) for $7,200 cash. July 1 Received cash dividends of $1 per share on Wade common stock. Sept. 1 Sold 300 shares of Wade common stock for $4,300. Dec. 1 Received cash dividends of $1 per share on Wade common stock. Instructions: a. Journalize the transactions.
On January 1, 2021, an investor company acquired 25% of an investee company's common stock for $2,880,000. As a result of this transaction, the investor can exert significant influence over the investee. During each year ended December 31, 2021 and 2022 the investee reported $576,000 of net income and $240,000 of dividends. On January 1, 2021, the book value of the investee's net assets was $9,600,000 and all individual net assets had appraised fair values that equaled their reported book values. On December 31, 2022, what is the balance of the Equity Investment account on the Investor's balance sheet? Select one: a. $3,048, 000 b. $2,880,000 c. $3,552,000 d. $2,964,000
An investor company purchased 121,000 of the 250,000 outstanding shares of the investee company's common stock for $79,000 on January 1, 2021. During 2021, the investee company declared and paid dividends of $55,000 and reported earnings for the year of $355,000. If the investor company uses the equity method of accounting for its investment in the investee company, its Equity Investment in the investee company account at December 31, 2021 should be $____________. (Do not round your answer for any part of the computation.)
Meman
Bonneau Company had the following transactions relating to investments in available-for-sale securities during the year. Prepare the required general journal entries for these transactions:July 4 Bonneau purchased 400 shares of Crossley Company stock at $120 per share plus a $400 brokerage fee. These stocks will be classified as Available-for-Sale securities.Sept 15 Bonneau received a $1.50 per share cash dividend on the Crossley Company stock.Dec 31 The fair value of the Crossley Company stock (the only investment that Bonneau owns) is $125 per share. The balance of the Fair value Adjustment—AFS account had a zero balance prior to adjustment.
On July 1, 2019, an investor company owns 20% of the common stock of an Investee and can exercise significant influence over the investee. On July 1, 2019, immedlately preceding the sale of 10% of the investee to an unaffiliated party, the balance of the Equity Investment account was $50,000. The Investor company sold the 106 Interest in the Investee for $30,000. The Investor company determined that after the sale of 10% it could no longer exert significant influence and that the remalning 106 investment has a readily determinable fair value. Immediately after the sale of the 10% interest, what is the carrying amount (I.e., balance) of the Equlty Investment and what method of accounting must the Investor use for the Equity Investment? Select one: a, Balance - $25,000 Method - Equity b. Balance $25,000 Method - Fair value C. Balance $30,000 Method - Fair value d. Balance- $ 30,000 Method Cost-based