please help me Required information[The following information applies to the questions displayed below.]Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-terminvestments.Year 1January 5 Selk purchased 50,000 shares (20% of total) of Kildaire's common stock for $1,600,000.October 23 Kildaire declared and paid a cash dividend of $2.10 per share.December 31 Kildaire's net income for the year is $1,133,000, and the fair value of its stock at December 31is $39 per share.Year 2October 15 Kildaire declared and paid a cash dividend of $3.10 per share.December 31 Kildaire's net income for the year is $1,138,000, and the fair value of its stock at December 31is $42 per share.Year 3January 2 Selk sold 3% (equal to 1,500 shares) of its investment in Kildaire for $56,300 cash.Assume that although Selk owns 20% of Kildaire's outstanding stock, circumstances indicate that it does not have a significantinfluence over the investee.Required:Prepare journal entries to record the preceding transactions and events for Selk.

What is meant by Journal entries? It is the first step to record the financial transactions in the…

Answered: Selk Steel Company, which began…

Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 January 5 Selk purchased 60,000 shares (20% of total) of Kildaire's common stock for $1,560,000. October 23 Kildaire declared and paid a cash dividend of $3.20 per share. December 31 Kildaire's net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.60 per share. December 31 Kildaire's net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 January 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash.
Selk Steel Company, which began operations in Year 1, had the following transactions and events in its long-term investments.Year 1 January 5 Selk purchased 40,000 shares (20% of total) of Kildaire's common stock for $1,400,000. October 23 Kildaire declared and paid a cash dividend of $3.80 per share. December 31 Kildaire’s net income for the year is $1,170,000, and the fair value of its stock at December 31 is $42 per share. Year 2 October 15 Kildaire declared and paid a cash dividend of $2.70 per share. December 31 Kildaire’s net income for the year is $1,181,000, and the fair value of its stock at December 31 is $46 per share. Year 3 January 2 Selk sold 2% (equal to 800 shares) of its investment in Kildaire for $67,400 cash. Assume that although Selk owns 20% of Kildaire’s outstanding stock, circumstances indicate that it does not have a significant influence over the investee.Required:Prepare journal entries to record the preceding transactions and events…
Selk Steel Co., which began operations in Year 1, had the following transactions and events in its longterm investments. Year 1 Jan. 5 Selk purchased 60,000 shares (20% of total) of Kildaire’s common stock for $1,560,000. Oct. 23 Kildaire declared and paid a cash dividend of $3.20 per share. Dec. 31 Kildaire’s net income for the year is $1,164,000, and the fair value of its stock at December 31 is $30.00 per share. Year 2 Oct. 15 Kildaire declared and paid a cash dividend of $2.60 per share. Dec. 31 Kildaire’s net income for the year is $1,476,000, and the fair value of its stock at December 31 is $32.00 per share. Year 3 Jan. 2 Selk sold 3% (equal to 1,800 shares) of its investment in Kildaire for $54,200 cash. Required Prepare journal entries to record these transactions and events for Selk. Assume that Selk has a significant influence over Kildaire with its 20% share of stock.
Brinkley Company, which began operations in Year 1, had the following transactions and events in its long-term investments. Year 1 Jan. 5 Brinkley purchased 20,000 shares (25% of total) of Bloch’s common stock for $200,500. Aug. 1 Bloch declared and paid a cash dividend of $1.05 per share. Dec. 31 Bloch’s net income for the year is $82,000, and the fair value of its stock is $11.90 per share. Year 2 Aug. 1 Bloch declared and paid a cash dividend of $1.35 per share. Dec. 31 Bloch’s net income for the year is $78,000, and the fair value of its stock is $13.65 per share. Year 3 Jan. 8 Brinkley sold 5% (equal to 1,000 shares) of its investment in Bloch for $12,025 cash. Required Prepare journal entries to record these transactions and events for Brinkley. Assume that Brinkley has a significant influence over Bloch with its 25% share.
On January 1, Vienna Corporation purchased 40% of the outstanding common stock of the Marietta Corporation for $137,500. During the year, Marietta Corporation reported net income of $50,000 and paid cash dividends of $25,000.The balance of the Investment in the Marietta Corporation account on the books of Vienna Corporation at year-end is: Select one: A. $147,500 B. $135,000 C. $100,000 D. $110,000
Cosmos Corporation had the following long-term investment transactions. Year 1 January 2 Purchased 5,000 shares of Visual, Inc. for $42 per share. October 15 Received Visual, Inc. cash dividend of $2 per share. December 31 Visual reported a net loss of $66,000 for the year. Year 2 February 2 Sold 5% of the shares of Visual Inc for $7000. Prepare the journal entries Cosmos Corporation should record for these transactions and events.
Required information [The following information applies to the questions displayed below.] Company T had 35,000 outstanding shares of common stock, par value $12 per share. On January 1 of the current year, Company P purchased some of Company T's shares as a long-term investment at $25 per share. At the end of the current year, Company T reported the following: income, $51,000, and cash dividends declared during the year, $22,500. The fair value of Company T stock at the end of the current year was $22 per share. Required: 1. For each of the following situations, identify the method of accounting that Company P should use. 4,200 shares purchased 10,500 shares purchased Accounting Method
Felicia Company acquired 21,000 of the 60,000 shares of outstanding common stock of NuecesCorporation as a long-term investment. The annual accounting period for both companies endsDecember 31. The following transactions occurred during the year:Jan. 10 Purchased 21,000 shares of Nueces common stock at $12 per share.Dec. 31 Nueces Corporation reported net income of $90,000.Dec. 31 Nueces Corporation declared and paid a cash dividend of $0.60 per share.Dec. 31 Determined the fair value of Nueces stock to be $11 per share.Required:1. What accounting method should the company use? Why?2. Give the journal entries for each of these transactions. If no entry is required, explain why.3. Show how the long-term investment and the related revenue should be reported on the financial statements of Felicia Company.
On January 2, Year 1, Barber Company purchased 6,100 shares of Convell Company for $71.720. Convell Company has a total of 30,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $83,000 and $78,000 for Year 1 and Year 2, respectively. What is the book value of Barber's investment in Convell at the end of Year 2? Multiple Choice S61.350. $102.920.
Hansen Inc. engaged in the following transactions during the current Hansen Inc. engaged in the following transactions during the current year: a. Repurchased 13,000 shares of its own $1 par common stock for $14 per share on January 14. b. Sold 2,000 treasury shares to employees for $6 per share on January 31. c. Repurchased 3,000 more shares of the $1 par common stock for $16 per share on July 24. d. Sold the remaining 11,000 shares from the January 14 purchase and 1,200 of the shares from the July 24 purchase to employees for $6.50 per share on August 1. Required: 1. Prepare journal entries for each of these transactions. 2. Determine what the effect on total stockholdersâ€™ equity is for each of the four transactions.
1. Record, in journal entry form, the following transactions, assuming the company plans on holding the investments for trading purposes: April 16 - Purchased 300 shares of Ameco for $25 per share. • May 2 - Purchased 1,000 shares of Rattle Inc. for $12.50 per share. • June 19 - Sold 100 Ameco shares for $32.75 per share. • October 7 - Purchased 550 shares of BMC for $27.80 per share. • November 30 - Received a dividend of $0.25 per share from Rattle. • December 12 - Sold half the shares in BMC for $21.00 per share. 2. Record any required journal entries on December 31, the company's year-end.
On January 4, Year 1, Barber Company purchased 13,500 shares of Convell Company for $162,000. Convell Company has a total of 67,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.75 per share, and its net income was $123,000 and $118,000 for Year 1 and Year 2 , respectively. The January 2, Year 3, entry to record Barber's sale of 8,100 shares of Convell Company stock, which represents 60% of Barber's total investment, for $109,350 cash, should be: Multiple Choice Debit Cash $109,350; debit Loss on Sale of Stock Investment $9,510; credit Equity Method Investments $99,840. Debit Cash $109,350; credit Gain on Sale of Stock Investment $20,250; credit Equity Method Investments $89,100. Debit Cash $109,350; debit Loss on Sale of Stock Investment $57,050; credit Equity Method Investments $162,000. Debit Cash $109,350; debit Loss on Sale of…