Horngren's Accounting (11th Edition)
11th Edition
ISBN: 9780133856781
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 15, Problem E15.14E
To determine
Concept Introduction:
Accounting for equity securities are done by
Requirement 1
To discuss:
The method to be used for investment accounting
To determine
Requirement 2;
To prepare:
Main solution:
| Date | Accounts Title& Explanation | Debit | Credit |
|---|---|---|---|
| Jan. 6, 2016 | Investment in Phase Motors’ Stock | $360000000 | |
| Cash | $140400 | ||
| (For recording purchase of stocks in Phase Motors) | |||
| Dec.31,2016 | Investment in Phase Motors’ Stock | $8000000 | |
| Equity in Earnings of Phase Motors | $8000000 | ||
| (For recording share in net income of Phase Motors) | |||
| Dec.31,2016 | Cash | $10000000 | |
| Investment in Phase Motors’ Stock | $10000000 | ||
| (For recording receipt of dividend) |
To determine
Requirement 3;
To prepare: T account and disclosure of investment in the
Main solution:
| Investment in Phase Motors’ Stock | |||
|---|---|---|---|
| Debit | Credit | ||
| Jan. 6, 2016 | $360000000 | Dec. 31, 2016 | $10000000 |
| Dec. 31, 2016 | $8000000 | ||
| Ending Balance | $358000000 | ||
| Phase Motors’ Stock | |
|---|---|
| Balance Sheet (Partial) | |
| As on December 31, 2016 | |
| Assets | |
| Non-current assets; | |
| Investment in Phase Motors’ Stock | $358000000 |
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Chapter 15 Solutions
Horngren's Accounting (11th Edition)
Ch. 15 - Prob. 1QCCh. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QCCh. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QCCh. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQCh. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. S15.1SECh. 15 - Prob. S15.2SECh. 15 - Prob. S15.3SECh. 15 - Prob. S15.4SECh. 15 - Prob. S15.5SECh. 15 - Prob. S15.6SECh. 15 - Prob. S15.7SECh. 15 - Prob. E15.8ECh. 15 - Prob. E15.9ECh. 15 - Prob. E15.10ECh. 15 - Prob. E15.11ECh. 15 - Prob. E15.12ECh. 15 - Prob. E15.13ECh. 15 - Prob. E15.14ECh. 15 - Prob. E15.15ECh. 15 - Prob. E15.16ECh. 15 - Prob. E15.17ECh. 15 - Prob. P15.18APGACh. 15 - Prob. P15.19APGACh. 15 - Prob. P15.20APGACh. 15 - Prob. P15.21BPGBCh. 15 - Prob. P15.22BPGBCh. 15 - Prob. 23CPCh. 15 - Prob. 15.1DCCh. 15 - Prob. 15.1EICh. 15 - Prob. 15.1FCCh. 15 - Financial Statement Case 151 Details about a...
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