(1) Equity investment : Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company. Fair value through net income method : This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company. Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. To journalize : The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

provide correct answer General accounting question

PART 2. (22 marks) Mangal Furnishings produce serving trays for the tourist industry in a five-stage process - Cutting & Shaping, Assembly, Sanding, Finishing and Packaging. Upon entering the finishing process, before the trays are stained and polished, a specialized piece of equipment is used to engrave a logo on each tray. After Packaging, the trays are sent to the business warehouse for delivery to customers. The following data relates to the Finishing Process for the month of March during which 3,800 trays valued at $597.90 each were transferred in from the Sanding Process. Other production costs incurred during the month are summarized as follows: Direct Materials Added Direct Manufacturing Wages Hireage cost of specialized logo equipment Manufacturing Overhead $343,380 $830,150 $21,300 $412,100 Process inspection occurs during the process and normally 2% of the trays entering the Finishing process are rejected and sold as scrap to local retailers at $750 each. During the month…

Equipment that costs $110,000 and on which $50,000 of accumulated depreciation has been recorded was disposed of for $70,000 cash. Recording this event would include an: A. gain of $10,000 B. A loss of $5,000. C. Increase to accumulated depreciation for $15,000 D. Decrease to equipment for $15,000.

Answer 2

Question

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Answer 6

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

Answer 7

Chapter 12, Problem 12.17E

To determine

(1)

Equity investment: Equity investments are stock instruments which claim ownership in the investee company and pay a dividend revenue to the investor company.

Fair value through net income method: This is the accounting method used for accounting stock or equity investments which claim less than 20% of the outstanding stock of the investee company.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,175,000, and the cost of shares was $1,345,000

Answer 8

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

Answer 9

To determine

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

Answer 10

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Answer 11

To determine

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 12 - All investments in debt securities are classified...Ch. 12 - When market rates of interest rise after a...Ch. 12 - Does GAAP distinguish between fair values that are...Ch. 12 - When a debt investment is acquired to be held for...Ch. 12 - Prob. 12.5Q Ch. 12 - What is comprehensive income? Its composition...Ch. 12 - Why are holding gains and losses treated...Ch. 12 - Prob. 12.8Q Ch. 12 - Prob. 12.9Q Ch. 12 - Prob. 12.10Q

Solution Summary: The author explains that equity investments claim ownership in the investee company and pay dividend revenue to the investor company. Journal entry is a set of economic events which can be measured in monetary terms.

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Want to see the full answer?

Chapter 12 Solutions

Solution Summary: The author explains that equity investments claim ownership in the investee company and pay dividend revenue to the investor company. Journal entry is a set of economic events which can be measured in monetary terms.

(2) To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

(3) To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000

Want to see the full answer?

Chapter 12 Solutions

(2)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,275,000, and the cost of shares was $1,345,000

(3)

To journalize: The adjusting entry as at December 31, 2018, if the fair value adjustment was $145,000, fair value of shares was $1,375,000, and the cost of shares was $1,345,000