acct 151 chapter 11

acct 151 chapter 11 - 540,000 Available-for-sale securities...

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Andrew Desiderio November 28, 2007 Professor Rudolph Acct 151: Chapter 11: 39, 53, 29, 59 29. 1. Cash Payment .10 X 1,000,000 x ½= 50,000 Semi-annual interest income = .12 X 926,400 X ½= 55,584 Amortization= 5,584 Assets = Liabilities + SE Cash Investment Bonds Retained Earnings a. -926,400 +926,400 b. +50000 +5584 +55584 c. +1000000 -1000000 2. Investment in bonds 926,400 Cash 936,400 Cash 50000 Investment in bonds 50000 Interest Revenue 55584 Cash 1000000 Investment in bonds 1000000 3. December 3120X1 June 30 20X2 Investment in bonds,10%, December 31, 20X1 926,400 (926400+5584)=931984 39. Trading securities: U.S. Gov’t Bonds 660,000 Held-to-maturity: Beta Corporation Bonds
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Unformatted text preview: 540,000 Available-for-sale securities 770,000 Total 1,970,000 2. Unrealized lost on trading securities 25,000 Trading securities 25,000 53. BRE + INCOME DIV= ERE 5128+384-128-4737= 647 2. 384 128 = 256 59. Medusa can control the dividend policy of Rasmussen by owning 19%. Therefore they can report a greater net income but not suffer any of the drawbacks that Rasmussen faces. 2. If they decisions made to purchase/sell their businesses was a result of them fighting together and forming a past friendship, then it may not be in the best interest of the shareholders....
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acct 151 chapter 11 - 540,000 Available-for-sale securities...

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