E9.34.Rand.E Question 1 Partially correct Mark 60.00 out of 64.00 Flag question Assessing Financial Statement Effects...

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E9.34.Rand.E Question 1 Partially correct Mark 60.00 out of 64.00 Flag question Assessing Financial Statement Effects Investments On January 1, Ball Corporation purchased shares of Leftwich Company common stock. (a) Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions. Use the financial statement effects template to record the following transactions: (1) Ball purchased 10,000 common shares of Leftwich at $12 cash per share. (2) Leftwich reported annual net income of $70,000. (3) Ball received a cash dividend of $1.20 per common share from Leftwich. (4) Year-end market price of Leftwich common stock is $19 per share. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Noncash Transaction (1) Cash Asset -120000 + Assets Liabilities + Contributed Capital + Earned Capital Revenue Expenses = Net Income 120000 0 0 0 0 (2) 0 (3) 12000 0 0 0 0 0 0 0 0 0 0 (4) 0 70000 0 0 12000 70000 12000 70000 0 0 0 0 12000 70000 eBook Print (b) Assume that the stock acquired by Ball represents 30% of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence. Use the financial statement effects template to record the following transactions: (1) Ball purchased 10,000 common shares of Leftwich at $12 cash per share. (2) Leftwich reported annual net income of $70,000. (3) Ball received a cash dividend of $1.20 per common share from Leftwich. (4) Year-end market price of Leftwich common stock is $19 per share. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets Contributed Earned Net Liabilities + Capital + Capital Revenue Expenses Income (1) -120000 120000 0 0 0 (2) 0 0 0 0 0 0 0 0 0 (3) 12000 -12000 0 0 0 0 0 0 (4) 0 0 0 0 0 0 0 0 Check E9.34.Rand.E Question 1 Partially correct Mark 60.00 out of 64.00 Flag question Assessing Financial Statement Effects Investments On January 1, Ball Corporation purchased shares of Leftwich Company common stock. (a) Assume that the stock acquired by Ball represents 15% of Leftwich's voting stock and that Ball has no influence over Leftwich's business decisions. Use the financial statement effects template to record the following transactions: (1) Ball purchased 10,000 common shares of Leftwich at $12 cash per share. (2) Leftwich reported annual net income of $70,000. (3) Ball received a cash dividend of $1.20 per common share from Leftwich. (4) Year-end market price of Leftwich common stock is $19 per share. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Noncash Transaction (1) Cash Asset -120000 + Assets Liabilities + Contributed Capital + Earned Capital Revenue Expenses = Net Income 120000 0 0 0 0 (2) 0 (3) 12000 0 0 0 0 0 0 0 0 0 0 (4) 0 70000 0 0 12000 70000 12000 70000 0 0 0 0 12000 70000 eBook Print (b) Assume that the stock acquired by Ball represents 30% of Leftwich's voting stock and that Ball accounts for this investment using the equity method since it is able to exert significant influence. Use the financial statement effects template to record the following transactions: (1) Ball purchased 10,000 common shares of Leftwich at $12 cash per share. (2) Leftwich reported annual net income of $70,000. (3) Ball received a cash dividend of $1.20 per common share from Leftwich. (4) Year-end market price of Leftwich common stock is $19 per share. Use negative signs with answers, when appropriate. Balance Sheet Income Statement Transaction Cash Asset + Noncash Assets Contributed Earned Net Liabilities + Capital + Capital Revenue Expenses Income (1) -120000 120000 0 0 0 (2) 0 0 0 0 0 0 0 0 0 (3) 12000 -12000 0 0 0 0 0 0 (4) 0 0 0 0 0 0 0 0 Check