Mallard Inc. owns shares of Oakwood Corporation that are classified as part of Mallard’s trading portfolio and accounted for using fair value through net income. At December 31, 2011, the securities were carried in Mallard’s accounting records at their cost of $850,000, which equalled their market value. On September 21, 2012, when the securities’ market value was $1.3 million, Mallard declared a property dividend that will result in the Oakwood securities being distributed on October 23, 2012, to shareholders of record on October 8, 2012. Prepare all necessary journal entries for the three dates.
Answer to relevant QuestionsOn April 20, Raule Mining Corp. declared a dividend of $400,000 that is payable on June 1. Of this amount, $150,000 is a return of capital. Prepare the April 20 and June 1 journal entries for Raule. The Red Dog Restaurant Limited reported the following balances at January 1, 2012: Common Shares—No Par Value (32,000 shares issued, unlimited authorized).... $ 800,000 Retained Earnings ........................1,500,000 ...Bonata Inc. sells 1,400 common shares on a subscription basis at $65 per share. On June 1, Bonata accepts a 45% down payment. On December 1, Bonata collects the remaining 55% and issues the shares. Prepare the company’s ...The common shares of Hoover Inc. are currently selling at $143 per share. The directors want to reduce the share price and increase the share volume before making a new issue. The per share carrying value is $34. There are ...Callaghan Inc. decided to sell shares to raise additional capital so that it could expand into the rapidly growing service industry. The corporation chose to sell these shares through a subscription basis and publicly ...
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