The following transactions relate to Brown Company's long-term investments. Brown did not own any long-term investments prior
Question:
The following transactions relate to Brown Company's long-term investments. Brown did not own any long-term investments prior to these transactions. Show
(1) the necessary journal entries and
(2) the relevant portions of each year's balance sheet and income statement that reflect these transactions for both years.
Transcribed Image Text:
Year 1 Sep. 9 Purchased 1,000 shares of Packard common stock for $80,000 cash. These shares represent 30% of Packard's outstanding shares. Oct. 2 17 Purchased 2,000 shares of AT&T common stock for $60,000 cash as a long-term investment. These shares represent less than a 1% ownership in AT&T. Purchased as a long-term investment 1,000 shares of Apple common stock for $40,000 cash. These shares are less than 1% of Apple's outstanding shares.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (3 reviews)
1 Journal entries for Year 1 Sep 9 Oct 2 Oct 17 Nov 1 Nov 30 Equity Method Investments Cash Acquired 1000 shares a 30 equity in Packard Stock Investments Cash Acquired 2000 shares of ATT Stock Investm...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2011...
-
The following transactions relate to bond investments of Livermore Laboratories. The company's fiscal year ends on December 31. Livermore uses the straight-line method to determine interest. 2018...
-
Required a. Use professional judgment in deciding on the preliminary judgment about materiality for earnings, current assets, current liabilities, and total assets. Your conclusions should be stated...
-
A woman flies from Phoenix to Denver (a distance of 800 mi) at a rate 40 mph faster than on the return trip. If the total time of the trip is 9 hrs, what was her rate going to Denver, and what was...
-
A convergent nozzle has a minimum area of 1 ft2 and receives air at 25 lbf/in 2, 1800 R flowing with 330 ft/s. What is the back pressure that will produce the maximum flow rate and find that flow...
-
Assume that for a given program 70% of the executed instructions are arithmetic, 10% are load/store, and 20% are branch. 1. Given this instruction mix and the assumption that an arithmetic...
-
Mr. Prestages foot and lower leg were caught in a combine manufactured by defendant SperryNew Holland. He and his wife sued Defendant for damages arising out of the accident. Their first cause of...
-
Dave Fletcher was able to deter-mine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project...
-
If an employee's benefit is paid from a qualified plan in the form of a qualifying lump-sum benefit at retirement, the employee's cost basis will be recovered _______________ with an income tax...
-
A company purchased \(\$ 30,000\) of \(5 \%\) bonds for investment purposes on May 1. The bonds pay interest on February 1 and August 1. The amount of interest revenue accrued at December 31 (the...
-
Prepare entries to record the following transactions of Garcia Company. Year 1 Jan. 1 Purchased 400 shares of Lopez Co. common stock for $3,000 cash. Lopez has 1,000 shares of common stock...
-
Using the information in this chapter, determine which tax form you should use and outline the types of records you will need. Talk with several taxpayers in different socioeconomic groups or stages...
-
How do theories of "ethnogenesis" elucidate the complex processes through which ethnic identities emerge and evolve over time, particularly in contexts of migration, globalization, and cultural...
-
How do intersectional approaches to ethnicity, such as those informed by Kimberl Crenshaw's work on intersectionality, deepen our understanding of how race, gender, class, and other axes of identity...
-
In light of the fact that the maximizing of profits is the major objective of all profit-oriented businesses, the manager of the corporation ought to accord the highest priority to the generation of...
-
The problem of high unemployment persists in many parts of the developing world. With reference to both the Harris-Todaro model of rural urban migration and the LFS Limited Factor Substitutability...
-
How attractive was this investment? With the recent coal prices dropped to a le lower than those dur- ing the global financial crisis, do you think it is a goo ti to prsue expansion of coal mi..ing:...
-
Garcia Corporation experienced a fire on December 31, 2010, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following...
-
The Dow Jones Industrial Average reached a high of $ 7801.63 on December 29, 1997. Recall from Example 18.4 that it reached a high of $ 1003 on November 14, 1972. The Consumer Price Index for...
-
After recording the transactions of Exercise 2-9 in T-accounts and calculating the balance of each account, prepare a trial balance. Use May 31, 2017, as its report date. In Exercise 2-9 Prepare...
-
Given the following selected account balances of Shanta Company, prepare its manufacturing statement for the year ended on December 31, 2013. Include a listing of the individual overhead account...
-
Use the information in Exercise 1-12 to prepare an income statement for Shanta Company (a man ufacturer). Assume that its cost of goods manufactured is $534,390. Sales . . . . . . . . . . . . . . . ....
-
A) What is the minimum number of memory accesses needed to access a location in virtual memory? For the following questions, assume we have a Translation Look-aside Buffer (TLB) and 2-level page...
-
Liquid bromine is a dark maroon/brown color. 1,2-dibromo alkanes, on the other hand, are colorless. What would it mean and why, if you added liquid bromine to your final transfer hydrogenation...
-
What is meaning of DMAC ? Explain this term Is DMAC hardware or software?
Study smarter with the SolutionInn App