Required information[The following information applies to the questions displayed below.)Felicia Company acquired 22.000 of the 55,000 shares of outstanding common stock of Nueces Corporation as a longterm investment. The annual accounting period for both companies ends December 31. The following transactionsoccurred during the year:Jan. 10 Purchased 22,000 shares of Nueces common stock at $14 per share.Dec. 31 Nueces Corporation reported net income of $104,000.Dec. 31 Nueces Corporation declared and paid a cash dividend of $0.70 per share.Dec. 31 Determined the fair value of Nueces stock to be $13 per share.3. Show how the long-term investment and the related revenue should be reported on the financial statements of Felicia CompanyBalance SheetFELICIA COMPANYLong-term Investments:Income Statement

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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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Matthews Company obtained all of the common stock of Jackson Company on January 1, 20X1. As of that date, Jackson had the following trial balance: Debit Credit Totals $720,000 $720,000 Accounts Payable $60,000 Accounts Receivable $50,000 Additional Paid-in Capital $60,000 Buildings, net (10-year life) $140,000 Cash $70,000 Common Stock $300,000 Equipment, net (8-year life) $240,000 Inventory $110,000 Land $90,000 Long-term Liabilities $180,000 Retained Earnings $120,000 Supplies $20,000 Any excess of cost over fair value is due to an unamortized patent (NOT goodwill) to be amortized over 10 years. During 20X1, Jackson reported net income of $96,000 while paying dividends of $12,000. During 20X2, Jackson reported net income of $132,000 while paying $36,000 in dividends. Assume that Matthews Co. acquired Jackson Co.’s common stock for $588,000 in cash. As of January 1, 20X1, Jackson’s land had a fair market value of $102,000, its buildings were valued at $188,000, and its equipment…
a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE Debit Credit X/X b. For the year ended December 31, Harris Company earned income of $50,000. DATE Debit Credit X/X c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE Debit Credit X/X d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit X/X i have a-c PLEASE ONLY HELP ON PART D
Cayuga Meadows purchased 42,000 shares of common stock of Long Corporation as a long-term investment for $1,000,000. During the year, Long Corporation reported net income of $500,000 Paid dividends of $200,000. Instructions: Assuming this purchase represents a 25% interest, prepare all the journal entries required for the year.
Rim Ltd purchased assets of 8,00,000 from Ant Ltd. It issued equity shares of 100 each full paid up in satisfaction of their claim. Make Journal entries to record these transactions.
Required information [The following information applies to the questions displayed below.] Lone Star Company is a calendar-year corporation, and this year Lone Star reported $148,000 in current E&P that accrued evenly throughout the year. At the beginning of the year, Lone Star's accumulated E&P was $17,760. Lone Star declared $44,400 in cash distributions on each of the following dates: April 1, July 1, October 1, and December 31. Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c. If Matt's basis in the Lone Star shares was $10,360 at the beginning of the year, how much capital gain will he recognize on the sale and distributions from Lone Star? Capital gain recognized on the sale and distribution 32
Russell Corp.'s transactions for the year ended December 31, 20X1 included the following:· Acquired 50% of Maxwell Corp.'s common stock for $200,000 cash which was borrowed from a bank.· Issued 5,000 shares of its preferred stock for land having a fair value of $320,000.· Issued 500 of its 11% debenture bonds, due 20X6, for $392,000 cash.· Purchased a patent for $220,000 cash.· Paid $120,000 toward a bank loan.· Sold available-for-sale securities for $796,000. Russell’s net cash provided by financing activities for 20X1 was Question 12 options: $472,000. $560,000. $592,000. $680,000.
On April 10 a company acquired land in exchange for 2,500 shares of $23 per common stock with a current market price of $74. Journalize this transaction.
Shamrock Co. had purchased 230 shares of Washington Co. for $37 each this year (Oregon Co. does not have significant influence). Shamrock Co. sold 100 shares of Washington Co. stock for $41 each. At year-end, the price per share of the Washington Co. stock had dropped to $31. Prepare the journal entries for these transactions and any year-end adjustments. (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 1. 2. 3.
21 )
D.5.
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.
Required information Skip to question [The following information applies to the questions displayed below.] As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 400,000 shares for $480,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $250,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $505,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

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