Showing 71 to 80 of 7218 Questions
  • Identify where each of the following items would be reported in the financial statements.1. Loss on sale of investments in stock.2. Unrealized gain on available-for-sale securities.3. Market adjustment—trading.4. Interest earned on investments in bonds.5. Unrealized loss on trading securities.Use the following possible categories:Balanc

  • Max Weinberg is studying for an accounting test and has developed the following questions about investments.1. What are three reasons why companies purchase investments in debt or stock securities?2. Why would a corporation have excess cash that it does not need for operations?3. What is the typical investment when investing cash for shor

  • Foren Corporation had the following transactions pertaining to debt investments. Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1.July 1 Received semiannual interest on Choate Co. bonds.July 1 Sold 30 Choate Co. bonds for $34,000 less $50

  • EmmyLou Company purchased 70 Harris Company 12%, 10-year, $1,000 bonds on January 1, 2010, for $73,000. EmmyLou Company also had to pay $500 of broker’s fees. The bonds pay interest semiannually on July 1 and January 1. On January 1, 2011, after receipt of interest, EmmyLou Company sold 40 of the bonds for $40,100.Instructions Prepare t

  • Dossett Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Goetz common stock (2%) for $6,000 cash, plus brokerage fees of $200.July 1 Received cash dividends of $1 per share on Goetz common stock.Sept. 1 Sold 300 shares of Goetz common stock for $4,400, less brokerage fees of $100.Dec.

  • Wyrick Inc. had the following transactions pertaining to investments in common stock.Jan. 1 Purchased 2,500 shares of Murphy Corporation common stock (5%) for $140,000 cash plus $2,100 broker’s commission.July 1 Received a cash dividend of $3 per share.Dec. 1 Sold 500 shares of Murphy Corporation common stock for $32,000 cash, less $800

  • On February 1, Neil Company purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400. On March 20, Neil Company sold 100 shares of Young stock for $2,900, less a $50 brokerage fee. Neil received a dividend of $1.00 per share on April 25. On June 15, Neil sold 200 shares of Young stock

  • On January 1 Kwun Corporation purchased a 25% equity in Connors Corporation for $180,000. At December 31 Connors declared and paid a $60,000 cash dividend and reported net income of $200,000.Instructions(a) Journalize the transactions.(b) Determine the amount to be reported as an investment in Connors stock at December 31.

  • Presented below are two independent situations.1. Heath Cosmetics acquired 15% of the 200,000 shares of common stock of Van Fashion at a total cost of $13 per share on March 18, 2010. On June 30,Van declared and paid a $60,000 dividend. On December 31,Van reported net income of $122,000 for the year. At December 31, the market price of Va

  • Ryan Company purchased 70% of the outstanding common stock of Wayne Corporation.Instructions(a) Explain the relationship between Ryan Company and Wayne Corporation.(b) How should Ryan account for its investment in Wayne?(c) Why is the accounting treatment described in (b) useful?