Current Attempt in Progress These are two independent situations: 1. Pharoah Cosmetics acquired 13% of the 278,500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $69,800 dividend. On December 31, Elite reported net income of $263,120 for the year. At December 31, the market price of Elite Fashion was $15 per share. 2. Sheffield Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 30,500 outstanding shares of common stock at a total cost of $11 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $32,100. On December 31, Kasey reported a net income of $120,900 for the year. Prepare all the necessary journal entries for 2022 for Sheffield Inc. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1 Account Titles and Explanation Unrealized Gain or Loss-Equity Cash June 15 Cash Unrealized Gain or Loss-Equity Dec. 31 く Unrealized Gain or Loss-Equity Debt Investments Debit 71500 9625 30625 Credit 7150C 9625 30625
Current Attempt in Progress These are two independent situations: 1. Pharoah Cosmetics acquired 13% of the 278,500 shares of common stock of Elite Fashion at a total cost of $14 per share on March 18, 2022. On June 30, Elite declared and paid a $69,800 dividend. On December 31, Elite reported net income of $263,120 for the year. At December 31, the market price of Elite Fashion was $15 per share. 2. Sheffield Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 30,500 outstanding shares of common stock at a total cost of $11 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of $32,100. On December 31, Kasey reported a net income of $120,900 for the year. Prepare all the necessary journal entries for 2022 for Sheffield Inc. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 1 Account Titles and Explanation Unrealized Gain or Loss-Equity Cash June 15 Cash Unrealized Gain or Loss-Equity Dec. 31 く Unrealized Gain or Loss-Equity Debt Investments Debit 71500 9625 30625 Credit 7150C 9625 30625
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Current Attempt in Progress
These are two independent situations:
1. Pharoah Cosmetics acquired 13% of the 278,500 shares of common stock of Elite Fashion at a total cost of $14 per share on
March 18, 2022. On June 30, Elite declared and paid a $69,800 dividend. On December 31, Elite reported net income of
$263,120 for the year. At December 31, the market price of Elite Fashion was $15 per share.
2. Sheffield Inc. obtained significant influence over Kasey Corporation by buying 25% of Kasey's 30,500 outstanding shares of
common stock at a total cost of $11 per share on January 1, 2022. On June 15, Kasey declared and paid a cash dividend of
$32,100. On December 31, Kasey reported a net income of $120,900 for the year.
Prepare all the necessary journal entries for 2022 for Sheffield Inc. (Record journal entries in the order presented in the problem.
Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Jan. 1
く
Unrealized Gain or Loss-Equity
Debit
Credit
71500
Cash
June 15
Cash
Unrealized Gain or Loss-Equity
Dec. 31
<
Unrealized Gain or Loss-Equity
Debt Investments
9625
30625
7150C
9625
30625
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education