image(11).jpg Brief Exercise 18-12 (Algo) Property dividend [LO18-7]Adams Moving and Storage, a family-owned corporation, declared a property dividendof 1,400 shares of GE common stock that Adams had purchased in February for$49,000 as an investment. GE's shares had a market value of $33 per share on thedeclaration date.Prepare the journal entries to record the property dividend on the declaration andpayment dates.Note: If no entry is required for a transaction/event, select "No journal entryrequired" in the first account field.View transaction listJournal entry worksheet<123Record adjustment of stock to fair value.Note: Enter debits before credits.Event1General JournalDebitCreditRecord entryClear entryView general journ

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Answered: Brief Exercise 18-12 (Algo) Property…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $146,000. On that date, the fair value of the noncontrolling interest was $36,500, and Slice reported retained earnings of $44,000 and had $92,000 of common stock outstanding. Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Pizza Slice Corporation Debit $ Products Company Debit $ 82,000 109,000 82,000 164,000 Item Credit Credit 88,000 277,000 82,000 507,000 176, 200 119,000 20,000 10,000 44,000 Cash & Receivables Inventory Land Buildings & Equipment Investment in Slice Products Company Cost of Goods Sold Depreciation Expense Inventory Losses Dividends Declared 44,000 10,000 6,000 22,000 $ 193,000 Accumulated Depreciation Accounts Payable Notes Payable Common Stock 40,000 266,920 285,000 299,000 207,000 32,280 $ 70,000 15,000 155,000 92,000 82,000 105,000 Retained Earnings Sales Income…
#20In 20A, Angelu company bought 10,000 shares of Eloisa company at a cost of P360,000. On December 1,20A, Angelu company declared a property dividend of the Eloisa company shares to shareholders ofrecord on February 1, 20B, payable on February 15, 20B. Eloisa company shares had the followingmarket value:December 1, 20A 450,000December 31, 20A 468,000February 15, 20B 432,000What is the net charge of the property dividend against retained earnings during 20A? 468,000 pls provide correct solution for the given answer
MCQ1 On November 1, Jeremiah Company ("IC") acquired the following investment which JC elected to account for using the OCI option under IFRS 9: • Lin Co. - 1,000 common shares at $30 per share. Brokerage fees to acquire the shares amounted to $500. JC's year-end is December 31. The quoted market price at December 31 was as follows: • Lin Co. = $32. If JC were to sell the investment at year-end, it would incur $600 of brokerage fees.
1 16 On January 1, 2024, Clor-Proell Enterprises bought 20% of the outstanding common stock of Chen Construction Company for $600 million cash. Chen's net income for the year ended December 31, 2024, was $300 million. During 2024, Chen declared and paid cash dividends of $60 million. Clor-Proell recorded the investment as follows: points PURCHASE General Journal ($ in millions) Debit Credit Investment in Chen Construction shares Cash 600 600 eBook NET INCOME Investment in Chen Construction shares (20% x $300 million) 60 Investment revenue 60 DIVIDENDS Hint Cash (20% x $60 million) 12 Investment in Chen Construction shares 12 Required: Print References What would be the pretax amounts related to the investment that Clor-Proell would report in its statement of cash flows for the year ended December 31, 2024? Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign. Operating activities $ 600 Investing activities…
Problem 16-12 (AICPA Adapted) Maxim Company acquired 40,000 ordinary shares on October 1 for P6,600,000 to be held for trading. On November 30, the investee distributed a 10% ordinary share dividend when the market price of the share was P250. On December 31, the entity sold 4,000 shares for P1,000,000. What amount should be reported as gain on sale of investment in the current year? a. 340,000 b. 400,000 c. 500,000 d. 600,000
Problem 16-13 (AICPA Adapted) 000.0E7 Presumptuous Company revealed the following information pertaining to dividends from nontrading investments in ordinary shares during the year ended December 31, 2021: The entity owned a 10% interest in Beal Company, which declared a cash dividend of P500,000 on November 30, 2021 to shareholders of record on December 31, 2021 and payable on January 15, 2022. On October 15, 2021, the entity received a liquidating dividend of P100,000 from Clay Mining Company. The entity owned a 5% interest in Clay Mining Company. What amount of dividend income should be reported for the current year? a. 500,000 b. 600,000 C. 150,000 d. 50,000 493
INVESTMENT IN ASSOCIATE 1. On January 1, 2021 Dona Company purchased 10% of another entity’s outstanding ordinary shares for P6,000,000. The investment classified as nonmarketable equity security and accounted for under the cost method. The following data pertain to investee’s operations for 2021 and 2022:2021 2022Net income 3,000,000 4,000,000Dividend paid none 9,000,000 What amount should Dona Company report as dividend income in its 2022 income statement?
x Your answer is incorrect. Inspirational Corporation (IC) purchased 2,000 shares of Dalmation Corporation (DC). representing a 10% ownership interest. The company intended to hold this Investment for a number of years and accounted for the investment using the cost model. IC received a cash dividend of $2 per share from DC. The entry to record the dividend in IC's book includes a credit to Long-term Investments for $4,000. credit to Dividend Income for $4,000. debit to Long-term Investments for $4,000. debit to Dividend Income for $4,000.
Problem 2 (Property Dividend) Goodie Corporation owns 20,000 shares of JFC Corporation recorded as “Investment in JFC Corporation” amounting to P 1.1 million as of December 31, 2019. On December 15, 2020, Goodie Corporation declared a property dividend to shareholders of record of December 30, distributable on January 5, 2021. The corporation will distribute three (3) ordinary shares of JFC Corporation for every share of Goodie Corporation owned by the shareholders. Goodie Corporation has 5,000 issued and outstanding shares at the time of declaration. The carrying value of JFC as of December 15, 2020 is 60 per share. The fair market value of JFC Corporation as follows: December 15 – 65 per share; December 31 – 67 per share; January 5 – 66 per share. Requirement: Journalize the transactions occurred in relation to property dividends. What will be the gain or loss on January 5, 2021?
The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Fair Value, Dec. 31 2022 N/A $ 37 Equity Investments A Corporation shares B Corporation shares C Corporation shares. D Industries shares Totals Cost $ 20 35 15 45 $115 1 Increase 2 Amount Harlon accounts for its equity investment portfolio at fair value through net income. Harlon sold its holdings of A Corporation shares on June 1, 2022, for $15 million. On September 12, it purchased the C Corporation shares. $ 2021 $ 14 Required: 1. What is the effect of the sale of the A Corporation shares and the purchase of the C Corporation shares on Harlon's 2022 pretax $ 35 N/A 46 $95 earnings? 2. At what amount should Harlon's securities equity investment portfolio be reported in its 2022 balance sheet? (For all requirements, enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) 14 50 $101 6 million 5 milion
PROBLEM 15 At the beginning of 2018, ESARiDe. Corporetion purchesed 406 of the ordinery shares outstanding of Mary Grece Incorporeted for P15,000.000 when the net assets of Mary Grece Incorporeted amounted to P30,000,000. At the acquisition dete, the carrying amounts of the identifieble assets and liebilities of Mary Grece Incorporeted were equel to their teir value, except for the following: Equipment whose air value was P7.000.000 greater than its carrying amount. b. Inventory whose tair velue wes P200.000 greeter then its carrying amount. a. The equipment hes a remaining lite of 4 years, and the inventory wes all sold during 2013. Mary Grace Incorporated has two classes of shares: Ordinary shares (par vale, P100). 300,000 shares outstanding 15% cumalative preference shares (gar valse, PS0). 100.00 shares outstanding The investee reported the following net income finclusive of enter-company transactions) and payment of cash dividend: 2018 2019 Net income 20,000,000 35,000,000…
On May 1, 20x1, Damage, Inc. declared cash dividends of P20 per share to shareholders of record on May 15, 20x1, for distribution on May 31, 20x1. Hetfield Co. purchases 20,000 Damage, Inc. shares for P200 per share and classifies the shares as investment in FVOCI securities. Requirements: Provide all the entries in May 20x1 under each of the following scenarios: a. Hetfield purchased the shares on May 5, 20x1. b. Hetfield purchased the shares on May 21, 20x1.

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