Question: Every question must be answered ! Please don't do it for you only going to answer 1 out of them S15-6 Accounting for available-for-sale investments
S15-6 Accounting for available-for-sale investments On June 1,2016, Rick's Restaurant decides to invest excess cash of $41,800 from the tourist season by purchasing 2,200 shares of Bison, Inc. stock at S19 per share. At year-end, December 31, 2016, Bison's market price was S15 per share. The investment is categorized as an available-for-sale investment and will be held for the short-term. Requirements 1. Journalize the transactions for Rick's investment in Bison, Inc. for 2016 2. In what category and at what value would Rick report the asset on the December 31, 2016, balance sheet? In what account would the market price change in Bison's stock be reported, if at all? 3. What was the net effect of the investment on Rick's net income for the year ended December 2016? S15-4 Accounting for equity method On January 1, 2016, Staub, Inc. decides to invest in 11,700 shares of Horsepasture stock when the stock is selling for S12 per share. On August l, 2016, Horsepasture paid a S0.30 per share cash dividend to stockholders. On December 31, 2016, Horsepasture reports net income of $60,000 for 2016. Assume Horsepasture has 26,000 shares of voting stock outstanding during 2016. Requirements 1.Identify what type of investment the Horsepasture stock is for Staub. 2. Journalize the transactions related to Staub's investment in the Horsepasture stock during 2016. 1.In what category and at what value would Staub's report the investment on the December 31, 2016, balance sheet? E15-16 Computing rate of return on total assets Winter Exploration Company reported these figures for 2016 and 2015 Income statement partial: 17 Balance Sheet partial
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