hw9 - cash 99,000 jun 15 cash 10,500 stock investment...

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GENERAL JOURNAL EH-1 Date Description Debit Credit 2007 jan . 1 debt investment 60,900 cash 60,900 july , 1 cash 3,000 interest revenue 3,000 1 cash 31,600 debt investment 30,450 gain on sales 1150 dec. 31interest receviable 1,500 interest revenue 1,500 EH-2 GENERAL JOURNAL Date Description Debit Credit 2007 feb. 1 stock investment 8,200 cash 8,200 jul. 1 cash 1,000 dividend revenue 1,000 sept. 1cash 5,400 stock investment 4,000 gain on sales 1400 dec.1 cash 500 dividend revenue 500 b. because it's less than 20% of the stock, it should report as income and losses but not hit the equity EH-5 GENERAL JOURNAL 1 Date Description Debit Credit 2007 mar. 1 stock investment 350,000 cash 350,000 jun. 30 cash 75,000 divdend revenue 75,000 dec. 31market adj-available for sale 50,000 unrealized gain 2 jan. 1 stock investment 99,000
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Unformatted text preview: cash 99,000 jun. 15 cash 10,500 stock investment 10,500 dec 31 stock investment 36,000 net income from perez 36,000 EH-8 dec. 31market adjustment-income 15,000 unrealized gain 15,000 31 unrealized loss 10,000 market adj- equity 10,000 PH-4 A. jan 1. stock investment 1,400,000 cash 1,400,000 jun. 30 cash 25,000 dividend revenue 25,000 B. jan1. stock investment 1,400,000 jun. 30 cash 25,000 stock investment 25,000 dec. 31Stock investment 160,000 net income by grey 16,000 C. under cost method, companies record investment at cost, and recognize revenue only when cash dividend s are receive, under equity method, investee's dividend decreases stock investment and its net income increase company's revenue....
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This note was uploaded on 03/09/2009 for the course BUAD 305 taught by Professor Davila during the Spring '07 term at USC.

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