Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company. Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

Question

can you give a journal entry, ledger,and adjustment entry about Laundry

Answer 1

Question

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

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Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Kyan Company Company Data from the current year-end balance sheets Data from the current year's income statement Assets $ 810,000 $ 886,200 Cash $ 18,500 $ 32,000 Accounts receivable, net 36,400 84,340 590,100 7,600 644,500 Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity 6,100 330,000 52,400 132,500 7,600 305,400 $ 475,340 $ 529,900 Sales Cost of goods sold Interest expense Income tax expense Net income Basic earnings per share Cash dividends per share Beginning-of-year balance sheet data Accounts receivable, net Merchandise inventory Total assets $ 71,340 82,800 $ 98,300 117,000 170,000 151,200 226,000 88,600 Common stock, $5 par value $ 475,340 $ 529,900 Retained earnings 14,000 15,569…

Answer 2

Question

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

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Answer 3

Question

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

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Answer 4

Question

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

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Answer 5

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

Answer 6

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

Answer 7

Chapter 15, Problem 15.6EX

(a)

To determine

Stock investments: Stock investments are equity securities which claim ownership in the investee company and pay a dividend revenue to the investor company.

Cost method: Cost method 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 stock investment transactions in the books of Corporation S, under the cost method

Answer 8

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

Answer 9

(b)

To determine

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

Answer 10

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

Answer 11

(c)

To determine

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

Answer 12

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Answer 23

Ch. 15 - Why might a business invest cash in temporary...Ch. 15 - What causes a gain or loss on the sale of a bond...Ch. 15 - When is the equity method the appropriate...Ch. 15 - How does the accounting for a dividend received...Ch. 15 - Prob. 5DQ Ch. 15 - What is the major difference in the accounting for...Ch. 15 - Prob. 7DQ Ch. 15 - How would a debit balance in Unrealized Gain...Ch. 15 - What are the factors contributing to the trend...Ch. 15 - Prob. 10DQ

Solution Summary: The author explains the cost method used for accounting stock or equity investments which claim less than 20% of the outstanding stock. Journal entry is a set of economic events recorded chronologically and systematically.

Concept explainers

To Prepare: journal entry for the dividend received from Corporation E for 12,000 shares.

To Prepare: Journal entry for sale of 4,000 shares of Corporation E at $62, with a brokerage of $100.

Chapter 15 Solutions