Course Hero Logo

Ex 182 sandafor company had these transactions

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 50 - 54 out of 64 pages.

Ex. 182Sandafor Company had these transactions pertaining to stock investments:Feb1Purchased 2,400 shares of BFF common stock (2% of outstanding shares) for$16,500 cash.July1Received cash dividends of $0.80 per share on BFF common stock.Sept.1Sold 800 shares of BFF common stock for $7,900Dec.1Received cash dividends of $.80 per share on BFF common stock.InstructionsJournalize the transactions.Ans: N/A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 8, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSAFOR INSTRUCTOR USE ONLYH-50
Reporting and Analyzing InvestmentsSolution 182(8 min.)Feb.1Stock Investments.......................................................16,500Cash....................................................................16,500July1Cash (2,400×$.80)....................................................1,920Dividend Revenue..............................................1,920Sept.1Cash.............................................................................7,900Stock Investments($16,500×800/2,400)........................................5,500Gain on Sale of Stock Investments($7,900 – $5,500)................................................2,400**(sell. pr. − (inv. cost×800/2,400))Dec.1Cash (1,600× $.80)....................................................1,280*Dividend Revenue...............................................1,280*(sh. pur. − sh. sold)×div./sh.Ex. 183PWAT Inc. had these transactions pertaining to investments in common stock:Jan1Purchased 2,000 shares of Pasco Corporation common stock (5% of outstandingshares) for $96,500 cash.July1Received a cash dividend of $1.70 per share.Dec.1Sold 800 shares of Pasco Corporation common stock for $40,200.31Received a cash dividend of $1.70 per share.InstructionsJournalize the transactions.Ans: N/A, LO: 2, Bloom: AP, Difficulty: Medium, Min: 8, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSAFOR INSTRUCTOR USE ONLYH-51
Test Bank for Financial Accounting: Tools for Business Decision Making, Eighth EditionSolution 183(8 min.)Jan.1Stock Investments.......................................................96,500Cash...................................................................96,500July1Cash (2,000×$1.70)..................................................3,400Dividend Revenue..............................................3,400Dec.1Cash.........................................................................40,200Gain on Sale of Stock Investments..........................1,600*Stock Investments($96,500×800/2,000).........................................38,600*(Sell. price − (inv. cost×800/2,000))Dec.31Cash (1,200×$1.70)...................................................2,040*Dividend Revenue...................................................2,040*(Sh. pur.sh. sold)×div./sh.Ex. 184Ultra Cosmetics acquired 10% of the 200,000 shares of common stock of Kardashian Fashion ata total cost of $14 per share on March 18, 2022. On June 30 Kardashian declared and paid a$96,000 dividend. On December 31 Kardashian reported net income of $244,000 for the year. AtDecember 31 the market price of Kardashian Fashion was $16 per share.InstructionsPrepare all the necessary entries for 2022 for Ultra Cosmetics.Ans: N/A, LO: 2, 3, Bloom: AP, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Measurement, AICPA PC:Problem Solving, IMA: FSASolution 184(5 min.)Mar.18Stock Investments.......................................................280,000Cash (200,000×10%×$14)..............................280,000June 30Cash.............................................................................9,600Dividend Revenue(96,000× 10%).................................................9,600Dec.31Fair Value Adjustment—Stock........................................................................40,000*Unrealized Gain or Loss—Income($320,000 – $280,000)....................................40,000*(sh. purch.×mar. pr./sh.) − inv. costFOR INSTRUCTOR USE ONLYH-52
Reporting and Analyzing InvestmentsEx. 185La Bouisse Inc. obtained significant influence over E-Stock Corporation by buying 40% of E-Stock 30,000 outstanding shares common stock at a total cost of $11 per share on January 1,2022. On June 15 E-Stock declared and paid a cash dividend of $32,000. On December 31 E-Stock reported a net income of $120,000 for the year.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 64 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
professor_unknown
Tags

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture