Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter E, Problem E.25BE
a.
To determine
To Prepare: The
b.
To determine
To Prepare: The journal entry to record the cash dividend received.
c.
To determine
To Prepare: The
d.
To determine
To Prepare: The journal entry to record sale of Company G stock.
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Assessing Financial Statement Effects of Marketable Equity Securities
Use the financial statement effects template to record the accounts and amounts for the following four transactions involving investments in marketable equity securities.
a. Purchased 14,000 common shares of Heller Co. at $16 cash per share.
b. Received a cash dividend of $1.25 per common share from Heller.
c. Year-end market price of Heller common stock is $17.50 per share.
d. Sold all 14,000 common shares of Heller for $220,920 cash.
Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction.
Note: Indicate a decrease in an account category by including a negative sign with the amount.
tion
N/A
N/A
N/A
N/A
Cash
Asset
(224,000)
17,500
+
220,920
* N/A
◆ * N/A
0
N/A
* N/A
Noncash Assets
224,000 =
=
21,000
* N/A
0✓ =
♦
=
N/A
* N/A
(171,500) * =
* N/A
Balance Sheet
Liabilities
0
0✔
0
0
4
+
>
N/A
N/A
N/A
N/A
Contrib.
Capital
0
0✔
0…
During your examination of the financial statements of Venus Corporation for the year ended December 31, 2020, you found a new account called "Investments." Your examination revealed that during 2020, Venus began a program of investments, and all investment-related transactions were entered in this account. Your analysis of this account for 2020 follows:
VENUS CORPORATION
Analysis of Investments
Year Ended December 31, 2020
Date—2020
(i) Jupiter Ltd. Common Shares
Feb. 14 Purchased 3,000 shares @ $ 55 per share $ 165,000 DR
Jul. 26 Received 300 Jupiter common shares as a stock dividend. (Memorandum entry)
Sep. 28 Sold the 300 Jupiter common shares received July 26 @ $ 70 per share $ 21,000 Credit
(ii) Mars Ltd. Common Shares
Apr. 30 Purchased 5,000 shares @ $ 40 per…
Journalize the following long-term, equity security transactions of Jeakin Department Stores:a. Purchased 450 shares of Fordham Fine Foods common stock at $33 per share (less than10% of Fordham’s outstanding stock), with the intent of holding the stock for the indefinite future.b. Received a cash dividend of $1.30 per share on the Fordham investment.c. At year-end, adjusted the investment account to fair value of $39 per share.d. Sold the Fordham stock for $28 per share.
Chapter E Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
Ch. E - Prob. 1QCCh. E - Rolling Hills Productions held investments in...Ch. E - Prob. 3QCCh. E - Crandall's investment is in less than 2% of...Ch. E - Dumois Corporation purchased 1,500 shares of...Ch. E - Prob. 6QCCh. E - Use the Dumois Corporation data in question 5....Ch. E - Prob. 8QCCh. E - Prob. 9QCCh. E - Prob. 10QC
Ch. E - Prob. E.1SCh. E - (Learning Objective 2: Account for investments in...Ch. E - Prob. E.3SCh. E - Prob. E.4SCh. E - Prob. E.5SCh. E - Prob. E.6SCh. E - Prob. E.7SCh. E - Prob. E.8SCh. E - Prob. E.9SCh. E - Prob. E.10SCh. E - (Learning Objective 5: Record a held-to-maturity...Ch. E - Prob. E.12SCh. E - (Learning Objective 5: Calculate and record...Ch. E - Prob. E.14SCh. E - Prob. E.15SCh. E - Prob. E.16SCh. E - Prob. E.17AECh. E - (Learning Objective 2: Record transactions for...Ch. E - (Learning Objective 2: Analyze and report...Ch. E - Prob. E.20AECh. E - Prob. E.21AECh. E - Prob. E.22AECh. E - Prob. E.23AECh. E - Prob. E.24BECh. E - Prob. E.25BECh. E - (Learning Objective 2: Analyze and report...Ch. E - (Learning Objective 3: Account for transactions...Ch. E - Prob. E.28BECh. E - Prob. E.29BECh. E - Prob. E.30BECh. E - Prob. E.31QCh. E - Prob. E.32QCh. E - Prob. E.33QCh. E - Prob. E.34QCh. E - Prob. E.35QCh. E - Dividends received on an equity-method investment...Ch. E - Prob. E.37QCh. E - Prob. E.38QCh. E - Prob. E.39APCh. E - (Learning Objectives 2, 3: Analyze and report...Ch. E - (Learning Objectives 2, 3: Analyze and report...Ch. E - Prob. E.42APCh. E - Prob. E.43BPCh. E - LO 2, 3 (Learning Objectives 2, 3: Analyze and...Ch. E - Prob. E.45BPCh. E - Prob. E.46BPCh. E - Prob. E.47DC
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