FIN & MGR ACCOUNTING W/ACCESS
9th Edition
ISBN: 9781265738624
Author: Wild
Publisher: MCG
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Chapter 14, Problem 18DQ
What are the three categories of
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Indigo Corporation purchased for $277,000 a 30% interest in Murphy, Inc. This investment enables Indigo to exert significant
influence over Murphy. During the year, Murphy earned net income of $183,000 and paid dividends of $64,000.
Prepare Indigo's journal entries related to this investment. (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.)
Account Titles and Explanation
(To record the purchase.)
(To record the net income.)
(To record the dividend.)
Debit
Credit
Cheyenne Corporation purchased 400 shares of Sherman Inc. common stock for $12,900 (Cheyenne does not have significant
influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.00 per
share.
Prepare Cheyenne' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value
adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (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
(a)
Debt Investments
Cash
(b)
Cash
Dividend Revenue
(c)
Fair Value Adjustment
Unrealized Holding Gain or Loss - Income
Debit
Credit
Crane Corporation purchased 360 shares of Sherman Inc. common stock for $11,800 (Crane does not have significant influence).
During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $34.50 per share.
Prepare Crane' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value
adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (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
(a)
(b)
(c)
Chapter 14 Solutions
FIN & MGR ACCOUNTING W/ACCESS
Ch. 14 - Prob. 1QSCh. 14 - QS 14-4 Direct and indirect costs C2
Diez Company...Ch. 14 - Classifying product costs C2 Identify each of the...Ch. 14 - QS 14-6 Product and period costs C3
Identify each...Ch. 14 - Prob. 6QSCh. 14 - Exercise 14-1 Sources of accounting information C1...Ch. 14 - Prob. 5ECh. 14 - Prob. 10ECh. 14 - Prob. 13ECh. 14 - Prob. 14E
Ch. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Exercise 14-17 Lean business practice C6 Many...Ch. 14 - Prob. 3PSACh. 14 - Problem 14-3B Schedule of cost of goods...Ch. 14 - Describe the managerial accountant’s role in...Ch. 14 - Distinguish between managerial and financial...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Distinguish between (a) factory overhead and (b)...Ch. 14 - Prob. 6DQCh. 14 - What product cost is both a prime cost and a...Ch. 14 - APPLE Assume that we tour Apple’s factory where it...Ch. 14 - Prob. 9DQCh. 14 - Prob. 10DQCh. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - Prob. 15DQCh. 14 - Prob. 16DQCh. 14 - What are the three categories of manufacturing...Ch. 14 - List several examples of factory overhead.Ch. 14 - Prob. 20DQCh. 14 - GOOGLE Prepare a proper title for the annual...Ch. 14 - Prob. 22DQCh. 14 - Prob. 23DQCh. 14 - Prob. 24DQCh. 14 - Prob. 2BTN
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