FINANCIAL ACCOUNTING 9TH
16th Edition
ISBN: 9781308821672
Author: Libby
Publisher: MCG/CREATE
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Chapter A, Problem 3CP
1.
To determine
Explain the reason for increase in investment balance from $485,000 to $556,000.
2.
To determine
Indicate the amount of investment revenue reported by Company S.
3.
To determine
Indicate the amount of investment revenue reported by Company S, if the company accounted the investment under fair value method.
4.
To determine
Indicate the amount of investment value reported by Company S, if the company accounted the investment under fair value method.
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On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term investment. On
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Complete this question by entering your answers in the tabs below.
Required 1
Required 2
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Journal entry worksheet
1
2
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On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of
ORD Corporation as a long-term investment.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 20
Record entry
Clear entry
View general journal
On May 20, Montero Company paid $240,000 to acquire 105 shares (5%) of ORD Corporation as a long-term investment. On August 5,
Montero sold one-tenth of the ORD shares for $25,500.
1. Prepare entries to record both the acquisition and the sale of these shares.
2. Should this stock investment be reported at fair value or at cost on the balance sheet?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare entries to record both the acquisition and the sale of these shares.
View transaction list
On December 30, Year 3, Varsity Corporation sold its investment in marketable equity securities costing $800,000 for $860,000 cash. The securities were
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gain or loss will Varsity report in its income statement for the year ending December 31, Year 3?
Multiple Choice
A $40,000 gain.
An $80,000 gain.
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Chapter A Solutions
FINANCIAL ACCOUNTING 9TH
Ch. A - Prob. 1QCh. A - Explain the difference in accounting methods used...Ch. A - Explain how bonds held to maturity are reported on...Ch. A - Explain the application of the cost principle to...Ch. A - Under the fair value method, when and how does the...Ch. A - Under the equity method, why does the investor...Ch. A - Prob. 7QCh. A - Prob. 8QCh. A - Prob. 9QCh. A - Company X owns 40 percent of Company Y and...
Ch. A - Prob. 2MCQCh. A - Dividends received from stock that is reported as...Ch. A - Prob. 4MCQCh. A - Prob. 5MCQCh. A - When using the equity method of accounting, when...Ch. A - Prob. 7MCQCh. A - Prob. 8MCQCh. A - Which of the following is true regarding the...Ch. A - Prob. 10MCQCh. A - Matching Measurement and Reporting Methods Match...Ch. A - Prob. 2MECh. A - Prob. 3MECh. A - Prob. 4MECh. A - Prob. 5MECh. A - Prob. 6MECh. A - Prob. 7MECh. A - Prob. 8MECh. A - Prob. 9MECh. A - Prob. 10MECh. A - Prob. 11MECh. A - Prob. 1ECh. A - Prob. 2ECh. A - Recording Transactions in the Available-for-Sale...Ch. A - Prob. 4ECh. A - Prob. 5ECh. A - Reporting Gains and Losses in the Trading...Ch. A - Prob. 7ECh. A - Prob. 8ECh. A - Prob. 9ECh. A - Prob. 10ECh. A - Prob. 11ECh. A - Prob. 1PCh. A - Prob. 2PCh. A - Prob. 3PCh. A - Prob. 4PCh. A - Prob. 5PCh. A - Comparing Methods to Account for Various Levels of...Ch. A - Prob. 7PCh. A - Recording Investments for Significant Influence LO...Ch. A - Prob. 9PCh. A - Prob. 10PCh. A - Prob. 11PCh. A - Prob. 1APCh. A - Prob. 2APCh. A - Reporting Passive Investments During January 2017,...Ch. A - Prob. 4APCh. A - Prob. 5APCh. A - Prob. 6APCh. A - Prob. 1CONCh. A - Finding Financial Information Refer to the...Ch. A - Prob. 2CPCh. A - Prob. 3CPCh. A - Prob. 4CPCh. A - Prob. 5CPCh. A - Prob. 6CP
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