desi - Student Name: Dessislava Jeleva BUS 208 A, B, C or D...

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Student Name: Dessislava Jeleva BUS 208 A, B, C or D (circle one) Fall 2008, AUBG EXTRA CREDIT ACTIVITY - OPTIONAL (Chapters 9, 10, and 11) This extra credit activity is due on October 23 rd 2008 , the first 10 minutes of class. It is optional, but strongly recommended, to complete this activity. This will be your only opportunity during the semester to earn extra credit points. Late work will not be accepted. 60 points maximum. Will count as 3% maximum toward your semester grade. Part I. Financial instruments. (15 points) On January 31, 2008, Cyprus Corporation purchased the following shares of voting common stock as long-term investments in available-for-sale securities. There is no significant influence on the part of Cyprus over Orange and Kiwi, nor a parent-subsidiaries relationship (control). The accounting period ends December 31. Stock Cost Market Value December 31, 2008 Market Value December 31, 2009 Orange Corporation $15,000 $12,000 $14,000 Kiwi Corporation $13,000 $12,000 $13,000 All of the Kiwi Corporation stock was subsequently sold by Cyprus for $13,500 on January 12, 2010. Give the required journal entries at the following dates: January 31, 2008: DR CR Long-term Investments in Securities Available for Sale 28,000 Cash 28,000 Cyprus Corporation purchased some shares of voting common stock in Orange Corp. and in Kiwi Corp. as long-term investments in available-for- sale securities December 31, 2008: Unrealized Loses 4,000 1
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Allowance to Value Investments to Market 4,000 Adjusting entry to recognize unrealized loss on Long-term Investments in Securities Available for Sale December 31, 2009: Allowance to Value Investments at Market 3,000 Unrealized Gains 3,000 Adjusting entry to recognize unrealized gains on Long-term Investments in Securities Available for Sale January 12, 2010: Cash 13,500 Long-term Investments in Securities Available for Sale 13,000 Realized Gain on Long-term Investments in Securities Available for Sale 500 Sale of all of Kiwi Corporation stock for $13,500, cost was $13,000 Part II. Property, Plant, Equipment. (12 points) Bennett Corporation sold a piece of equipment on June 30, 2012 for $50,000 cash. The equipment had been purchased on January 1, 2008 for $150,000. It had an estimated useful life of 6 years and a $30,000 residual value. Bennett Corp. has been using the straight-line method of depreciation and has a year-end of December 31. Give any journal entry(ies) required at the time of disposal. Round
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desi - Student Name: Dessislava Jeleva BUS 208 A, B, C or D...

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