223_Hwk_12_Solutions

223_Hwk_12_Solutions - HA 223 Solutions to Chapter 12...

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Unformatted text preview: HA 223: Solutions to Chapter 12 Homework M12–3. December 2, 2008: Investment in TS (+A)............................................................. 224,000 Cash (- A).......................................................................... 224,000 Purchased 8,000 shares (16%) of Cox Corporation common stock at $28 per share. December 15, 2008: Cash (+A)............................................................................... 16,000 Investment income (+R, +SE)........................................ 16,000 Cash dividend received (8,000 shares x $2 = $16,000). December 31, 2008: Net unrealized loss/gain – TS (+Loss, - SE)........................... 24,000 Allowance to value at market – TS (- A)........................... 24,000 Market- Cost = Allowance Balance- Unadjusted Balance = Adjustment $200,000 $224,000 - $24,000 $0 - $24,000 M12–7. July 2, 2008: Cash (+A)............................................................................... 30,000 Investments in associated companies (- A)..................... 30,000 Cash dividend received (10,000 shares x $3 = $30,000). December 31, 2008: Investments in associated companies (+A)........................... 50,000 Equity in earnings of associated companies (+R, +SE).. 50,000 Recognize earnings from associated company (25% x $200,000) M12–9. Property and equipment (+A)................................................. 630,000 Goodwill (+A) ......................................................................... 70,000 Bonds payable (+L)......................................................... 100,000 Cash (–A) ....................................................................... 600,000 E12–1. Req. 1 July 1, 2007: Investment in bonds (+A)....................................................... 10,000,000 Cash (–A)......................................................................... 10,000,000 Req. 2 Dec 31, 2007: Cash (+A).............................................................................. 500,000 Interest revenue (+R, +SE).............................................. 500,000 ($10 million x 10% x 6/12 of a year)...
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This homework help was uploaded on 02/19/2009 for the course HA 230 taught by Professor Davidlee during the Fall '06 term at Cornell.

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223_Hwk_12_Solutions - HA 223 Solutions to Chapter 12...

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