The journal entry to record the purchase of K shares.

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Answer 1

Question

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

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Subject:- General Account

Subject:- General Account - On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 39,000 units were started. At the end of the month all started units were 60% complete with respect to conversion. Direct Materials placed into production had a total cost of $395,000 and the total conversion cost for the month was $408,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round the answer to the nearest cent.)

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 39,000 units were started. At the end of the month all started units were 60% complete with respect to conversion. Direct Materials placed into production had a total cost of $395,000 and the total conversion cost for the month was $408,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round the answer to the nearest cent.)

Answer 2

Question

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

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Answer 3

Question

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

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Answer 4

Question

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

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Answer 5

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

Answer 6

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

Answer 7

Chapter 16, Problem 16.7P

a.

To determine

To prepare: The journal entry to record the purchase of K shares.

Answer 8

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

Answer 9

b.

To determine

To prepare: The journal entry to reflect P’s share of K’s dividends.

Answer 10

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

Answer 11

c.

To determine

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

Answer 12

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

Answer 13

d.

To determine

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 16 - Prob. 16.1Q Ch. 16 - Is reporting an investment at its cost considered...Ch. 16 - Prob. 16.3Q Ch. 16 - Prob. 16.4Q Ch. 16 - Prob. 16.5Q Ch. 16 - Prob. 16.6Q Ch. 16 - What categories can managers use to classify...Ch. 16 - When is the equity method of accounting for...Ch. 16 - Prob. 16.9Q Ch. 16 - Can companies apply the fair value option to all...

The journal entry to record the purchase of K shares.

Solution Summary: The author explains that the journal entry is the primary record of the business transaction in chronological (date wise) order.

Concept explainers

To prepare: The journal entry to record the purchase of K shares.

To prepare: The journal entry to reflect P’s share of K’s dividends.

To prepare: The journal entry to adjust P’s investment to its fair value of $54 per share at year-end.

To prepare: The journal entry to record the sale of 900 K’s shares for $63 per share at the beginning of the next year.

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Chapter 16 Solutions