Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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On January 1, 2020, Windsor Company purchased 6,100 shares of Kusher Company stock for $439,200. Windsor's investment
represents 30 percent of the total outstanding shares of Kusher. During 2020, Kusher paid total dividends of $152,000 and reported
net income of $456,000.
What revenue does Windsor report related to this investment and what is the amount to be reported as an investment in Kusher stock
at December 31?
Revenue
$
Investment in Kusher stock at December 31
$
How much should be reported in the 2019 Profit or Loss?
On April 10, 2019, Amelia Inc. purchased 450 shares of its own common stock in the market for $22 per share. On
September 28, 2019, the company sold 270 of these shares in the open market at a price of $25 per share.
Required:
a. Use the horizontal model to show the effects on Amelia Inc's financial statements of the purchase of the treasury stock on April 10,
2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
b. Use the horizontal model to show the effects on Amelia Inc's financial statements of the sale of the treasury stock on September 28,
2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)
Balance Sheet
Income Statement
Assets
Liabilities
Stockholders' Equity
Net Income
Revenues
Expenses
+
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