1. Identify the appropriate accounting method for each of the following situations: a. Investment in 30%...
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1. Identify the appropriate accounting method for each of the following situations: a. Investment in 30% of the investee company's stock of which the investor has significant influence b. Available-for-sale debt investment c. Investment in more than 50% of the investee company's stock d. Bond investment that matures in three years. The investor plans to hold the bond for the full three years. 2. At what amount should the following trading debt investment portfolio be reported on the December 31, 2018, balance sheet? Bond Investment Cost Current Market Value Red $ 2,500 $ 2,900 Gold 61,800 52,900 4,050 6,250 Charcoal $ 68,350 $ 62,050 Totals Journalize any adjusting entry required on December 31. 3. An investor paid $70,200 on January 1, 2018, to acquire 35% of Longboard - Lady, Inc.'s outstanding common stock. The investor had significant control of Longboard - Lady, Inc. For the year ending December 31, 2018, Longboard - Lady's net income was $60,000, and on June 14, the company declared and paid cash dividends of $20,000 to all stockholders. Journalize the investor's transactions related to the Longboard - Lady investment: (a) purchase of the investment, (b) receipt of dividends, (c) investor's share of net income, and (d) sale of Longboard - Lady stock for $86,700 on January 3, 2019. Requirement 1. Identify the appropriate accounting method for each of the following situations: Accounting Method a. Investment in 30% of the investee company's stock of which the investor has significant influence b. Available-for-sale debt investment c. Investment in more than 50% of the investee company's stock d. Bond investment that matures in three years. The investor plans to hold the bond for the full three years. Requirement 2. At what amount should the following trading investment portfolio be reported on the December 31, 2018, balance sheet? Journalize any adjusting entry required on December 31. (Click the icon to review the trading investment portfolio.) The total trading investment portfolio should be reported at $ on the December 31, 2018 balance sheet. Journalize any adjusting entry required on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanations column and leave the remaining cells blank.) Date 2018 Dec. 31 Accounts and Explanations Debit Credit Requirement 3. An investor paid $70,200 on January 1, 2018, to acquire 35% of Longboard - Lady, Inc.'s outstanding common stock. The investor had significant control of Longboard - Lady, Inc. For the year endind December 31, 2018, Longboard - Lady's net income was $60,000, and on June 14, the company declared and paid cash dividends of $20,000 to all stockholders. Journalize the investor's transactions related to the Longboard - Lady investment: (a) purchase of the investment, (b) receipt of dividends, (c) investor's share of net income, and (d) sale of Longboard - Lady stock for $86,700 on January 3, 2019. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanations column and leave the remaining cells blank.) (a) Begin by journalizing the investor's purchase of the Longboard - Lady investment. An investor paid $70,200 on January 1, 2018, to acquire 35% of Longboard-Lady, Inc.'s outstanding common stock. Date 2018 (a) Jan. 1 Accounts and Explanations Debit Credit (b) Journalize the receipt of dividends. On June 14, Longboard - Lady declared and paid cash dividends of $20,000 to all stockholders. Date 2018 (b) Jun. 14 Accounts and Explanations Debit Credit (c) Journalize the investor's share of net income. During the first year, Longboard - Lady's net income was $60,000. Accounts and Explanations Date 2018 (c) Dec. 31 Debit Credit (d) Journalize the sale of Longboard - Lady stock for $86,700 on January 3, 2019. Date 2019 (d) Jan. 3 Accounts and Explanations Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question. 1. Identify the appropriate accounting method for each of the following situations: a. Investment in 30% of the investee company's stock of which the investor has significant influence b. Available-for-sale debt investment c. Investment in more than 50% of the investee company's stock d. Bond investment that matures in three years. The investor plans to hold the bond for the full three years. 2. At what amount should the following trading debt investment portfolio be reported on the December 31, 2018, balance sheet? Bond Investment Cost Current Market Value Red $ 2,500 $ 2,900 Gold 61,800 52,900 4,050 6,250 Charcoal $ 68,350 $ 62,050 Totals Journalize any adjusting entry required on December 31. 3. An investor paid $70,200 on January 1, 2018, to acquire 35% of Longboard - Lady, Inc.'s outstanding common stock. The investor had significant control of Longboard - Lady, Inc. For the year ending December 31, 2018, Longboard - Lady's net income was $60,000, and on June 14, the company declared and paid cash dividends of $20,000 to all stockholders. Journalize the investor's transactions related to the Longboard - Lady investment: (a) purchase of the investment, (b) receipt of dividends, (c) investor's share of net income, and (d) sale of Longboard - Lady stock for $86,700 on January 3, 2019. Requirement 1. Identify the appropriate accounting method for each of the following situations: Accounting Method a. Investment in 30% of the investee company's stock of which the investor has significant influence b. Available-for-sale debt investment c. Investment in more than 50% of the investee company's stock d. Bond investment that matures in three years. The investor plans to hold the bond for the full three years. Requirement 2. At what amount should the following trading investment portfolio be reported on the December 31, 2018, balance sheet? Journalize any adjusting entry required on December 31. (Click the icon to review the trading investment portfolio.) The total trading investment portfolio should be reported at $ on the December 31, 2018 balance sheet. Journalize any adjusting entry required on December 31. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanations column and leave the remaining cells blank.) Date 2018 Dec. 31 Accounts and Explanations Debit Credit Requirement 3. An investor paid $70,200 on January 1, 2018, to acquire 35% of Longboard - Lady, Inc.'s outstanding common stock. The investor had significant control of Longboard - Lady, Inc. For the year endind December 31, 2018, Longboard - Lady's net income was $60,000, and on June 14, the company declared and paid cash dividends of $20,000 to all stockholders. Journalize the investor's transactions related to the Longboard - Lady investment: (a) purchase of the investment, (b) receipt of dividends, (c) investor's share of net income, and (d) sale of Longboard - Lady stock for $86,700 on January 3, 2019. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanations column and leave the remaining cells blank.) (a) Begin by journalizing the investor's purchase of the Longboard - Lady investment. An investor paid $70,200 on January 1, 2018, to acquire 35% of Longboard-Lady, Inc.'s outstanding common stock. Date 2018 (a) Jan. 1 Accounts and Explanations Debit Credit (b) Journalize the receipt of dividends. On June 14, Longboard - Lady declared and paid cash dividends of $20,000 to all stockholders. Date 2018 (b) Jun. 14 Accounts and Explanations Debit Credit (c) Journalize the investor's share of net income. During the first year, Longboard - Lady's net income was $60,000. Accounts and Explanations Date 2018 (c) Dec. 31 Debit Credit (d) Journalize the sale of Longboard - Lady stock for $86,700 on January 3, 2019. Date 2019 (d) Jan. 3 Accounts and Explanations Debit Credit Choose from any list or enter any number in the input fields and then continue to the next question.
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1 Identify the appropriate accounting method for each of the following situations a Investment in 30 ... View the full answer
Related Book For
Intermediate Algebra
ISBN: 9780134895987
13th Edition
Authors: Margaret Lial, John Hornsby, Terry McGinnis
Posted Date:
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