Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 10, Problem 10.13E
1.
To determine
Significant interest investments:
Significant interest investments are the equity securities, where the investor holds in between 20% to 50% of the voting stock. These securities are reported as long-term assets in the
To Journalize: The transactions of GB Investments’ in S’s stock for the year 2016.
2.
To determine
To classify and prepare: The partial financial statement for GB Investments’ on S’s stock of 25% as of December 31, 2016.
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Information pertaining to long-term stock investments in 2014 by Bell Inc. follows: Obtained significant influence over Paul Company by buying 30% of Paul's 100,000 outstanding shares of common stock at a total cost of $22 per share on January 1, 2014. On June 15, Paul Company declared and paid a cash dividend of $1.50 per share. On December 31, Paul's reported net income was $280,000.
Instructions Prepare all necessary journal entries for 2014 for Bell Corporation.
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On January 1, 2018, Bryant, Inc. decides to invest in 3,750 shares of Farrier stock when the stock is selling for $16 per share. On August 1, 2018, Farrier paid a $1.70 per share cash dividend to stockholders. On December 31, 2018, Farrier reports a net income of $50,000 for 2018. Assume Farrier has 15,000 shares of voting stock outstanding during 2018 and Bryant has significant influence over Farrier.
Requirements
Identify what type of investment the Farrier stock is for Bryant.
Journalize the transactions related to Bryant’s investment in the Farrier stock during 2018.
In what category and at what value would Bryant’s report the investment on the December 31, 2018, balance sheet?
On March 20, 2018, Reeder Company acquired 40,000 shares of Needed Industries common stock at $64 per share as a long-term investment. Needed has 100,000 shares of outstanding voting common stock. The following additional information is presented for the calendar year ended December 31, 2018:
Nov. 15 Reeder received a cash dividend of $3.00 per share from Needed Industries.
Dec. 31 Needed announced earnings for the year of $250,000.
Dec. 31 Needed Industries common stock had a closing market price of $56 per share.
2019:
Jan. 6 Reeder sold a quarter of its shares of Needed Industries at a price of $70 per share.
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Chapter 10 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 10 - Prob. 1QCCh. 10 - Which of the following investments is most likely...Ch. 10 - If Intervale Railway invests 100,000 in 5% bonds...Ch. 10 - Prob. 4QCCh. 10 - Prob. 5QCCh. 10 - Prob. 6QCCh. 10 - Prob. 7QCCh. 10 - Harvard Co. purchased a trading investment on...Ch. 10 - Prob. 9QCCh. 10 - Prob. 10QC
Ch. 10 - What is a debt security?Ch. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Briefly describe the five specific types of debt...Ch. 10 - How is the purchase of a held-to-maturity debt...Ch. 10 - Prob. 6RQCh. 10 - What method is used for investments in equity...Ch. 10 - What method is used for investments in equity...Ch. 10 - What adjustment must be made at the end of the...Ch. 10 - Where on the financial statements is an unrealized...Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - What does the rate of return on total assets...Ch. 10 - Identifying why companies invest and classifying...Ch. 10 - Prob. 10.2SECh. 10 - Prob. 10.3SECh. 10 - Accounting for equity method On January 1, 2016,...Ch. 10 - Accounting for trading investments On February 1,...Ch. 10 - Prob. 10.6SECh. 10 - Computing rate of return on total assets Kabra's...Ch. 10 - Prob. 10.8ECh. 10 - Prob. 10.9ECh. 10 - Accounting for bond investments Otter Creek Co....Ch. 10 - Accounting for stock investments Dollar Bill...Ch. 10 - Prob. 10.12ECh. 10 - Prob. 10.13ECh. 10 - Accounting for stock investments Suppose that on...Ch. 10 - Prob. 10.15ECh. 10 - Prob. 10.16ECh. 10 - A Accounting for bond investments Suppose Jenner...Ch. 10 - Prob. 10.18APCh. 10 - Accounting for stock investments The beginning...Ch. 10 - Accounting for bond investments Suppose Ritter...Ch. 10 - Classifying and accounting for stock investments...Ch. 10 - Accounting for stock investments The beginning...Ch. 10 - Prob. 10.23CPCh. 10 - Prob. 10.1CTEICh. 10 - Wild Adventure conducts tours of wildlife reserves...Ch. 10 - Prob. 10.1CTFSCCh. 10 - Prob. 10.1CTTPCh. 10 - In 150 words or fewer, explain the difference...
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