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.

Q: Brinkley Company, which began operations in Year 1, had the following transactions and events in its…

A: Definition: Equity investments: The financial instruments which claim ownership in the issuing…

Q: Oriental Furnishing Company purchased `3,600 shares of Wire &Wire products shares at OR 15 per share…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: On January 2. Year 1, Barber Company purchased 6,100 shares of Convell Company for $71,720. Convell…

A: Number of Share purchases of Convell Company 6100 Shares Total Number of Share outstanding of…

Q: . What amount should be debited to the investment account if the rights were not accounted for…

A: Stock rights are the rights which are given by the company to the existing shareholders or the…

Q: The following information was taken from the financial records of the XYZ Company. a) Net income…

A: Given the following information: Net income was $189,500 for the period. Purchased 10,000 shares of…

Q: At a total cost of $761,600, Herrera Corporation acquired 56,000 shares of Tran Corp. common stock…

A: Investment-  Investment refers to the process of buying different types of stocks and shares and…

Q: How much is the total cash outflows from investing activities?

A: Total cash outflows from investing activities -15200000 (Option A)

Q: At a total cost of $6,700,000, Herrera Corporation acquired 238,000 shares of Tran Corp. common…

A: The question is based on the concept of Financial Accounting.

Q: Agustin Company has the following transactions relating to its investments during 2022. January 5 -…

A: Introduction:- The following basic information as follows under:- Shares held-for-trading means…

Q: Brooks Corporation owns 40% of the common stock of the Fairmont Corp. as a long-term investment…

A: As per international financial reporting standards  on consolidation  Investment  in associate is to…

Q: Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on…

A: Purchases of 300 shares for $9300 i.e.$31per share

Q: Draft Co. purchased 14,00 shares of Hamburg Corporation's 40,000 shares of common stock on January.…

A: Introduction Investment in common stock: Investments are the assets representing company’s right to…

Q: The securities owned by Miratloces Company were held as a long-term investment. During the current…

A: S.No Particulars Amount in Dr. Amount in Cr. 1-Jan     Investment in ABC company A/c    To Bank…

Q: Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: Selk Steel Co., which began operations in Year 1, had the following transactions and events in its…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The…

A: Answer -    Working - 1. (1,200 shares * $88) + $135 = 105735 2. (3,000 shares * $38) + $85 = 114085…

Q: The securities owned by Miraflores Company were held as a long-term investment. During the current…

A: Journal entries Carrying value of the investment.

Q: Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of…

A:

Q: Baur Company acquired 20,000 ordinary shares on October 1 for P1,344,000 to be held for trading. On…

A: Stock: Stock is a share that describes the ownership of an individual in the corporation. These…

Q: Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a tradinginvestment for…

A: Journal entry to record the purchase of an investment will include a debit to investment account and…

Q: Texas, Inc., sold common stock for $560,000 and preferred stock for $36,000 during the cur-rent…

A: The cash flows related to the company's operations are reported in operating activities. The cash…

Q: As a long-term investment at the beginning of the fiscal year, Florists International purchased 30%…

A: Prepare the journal to record from the purchase to the end of the year.

Q: Montana Company engaged in the following investment transactions during the current year. February 1…

A: In the context of the given question, we are required to compute the dividend income that should be…

Q: What amount should Romina Inc. report as dividend income?

A: No of shares bought by Romina Inc. = 160,000 shares             No of shares after stock split =…

Q: Prepare the journal entries to record the following non-strategic investment transactions of Ace…

A: Financial transactions are recorded in the form of a journal entries.

Q: Gold Co. received dividends from its common stock investments during the year ended December 31 as…

A: Dividend  arising from  trading  security  is an Dividend income

Q: On January 1, Sohar Corporation purchased a 25% equity in Salalah Corporation for $120,000. At…

A: Journal entry: It can be defined as the recording of financial events and transactions that have…

Q: During 2012 Logic Company purchased 4,000 shares of Midi, Inc. for P30 per share. The investment was…

A: In this question, Logic company has purchased 4000 shares at P30/share of Midi Inc during 2012 out…

Q: Adams Moving and Storage, a family-owned corporation, declared a property dividend of 2,000 shares…

A: Property dividend: Distribution of non-cash assets in the form of dividend is referred to as…

Q: On January 1, Ivanhoe Corporation purchased a 25% equity in Helbert Corporation for $152,000. At…

A: Investment in Helbert, December 31 = Stock Investments cost + Share of net income - Dividends…

Q: Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported…

A: When one company is holding significant amount of share of another company , then equity method of…

Q: Assume all investments are short-term and readily marketable. The following transactions occurred.…

A: Solution: Introduction: Journal entry is an accounting entry to record every transaction takes place…

Q: It is year 1, the White Caps Ltd.’s first year of operations. White Caps Ltd. had the following…

A: 1. Journal entry:

Q: Martin Company provided the following data for the current year: -On March 1, Martin received…

A: Dividend income refers to the amount which a shareholder receives on his investment. When a…

Q: On January 1, Tasty Foods purchased 10,000 shares (100%) of Eco-Safe Packaging’s voting stock for…

A: Cash Balance:  The consolidated financial statements are prepared by combining the operating…

Q: Light Inc. had the following activities during the current year: Acquired 4,000 shares of Dark Inc.…

A: Answer:-  Cash flow from investing activities:-  Cash flow from investing activities is one of the…

Q: Light Inc. had the following activities during the current year: Acquired 4,000 shares of Dark Inc.…

A: Cash inflows from operating activities mean the cash received in respect of carrying out the daily…

Q: On January 2, 20Y7, Mikedes Company acquired 30% of the outstanding stock of Violet Company for…

A: Journal entry shows the recording of the transaction during an accounting year and every transaction…

Q: On January 4, Year 1, Ferguson Company purchased 64,000 shares of Silva Company directly from one of…

A: Equity method of accounting refers to the process of recording transactions under which the revenue…

Q: Carla, Inc. purchased 1,810 shares of Oneida Corporation common stock for $84,600. During the year.…

A: As per  IFRS 9, Equity investments are to be accounted as per Fair value through profit or loss…

Q: James Company purchased 900 shares of POP Company's stock as a long-term investment for $57,600.…

A: Formula: Purchase price per share = Total purchase value / Number of shares purchased

Q: Ace Holding Co. shows the following investments in its accounting records at January 1, 2020:…

A:

Q: utstanding stock of Marco Company on January 1. Marco reported net income of $76,000 and declared…

A: The equity method of accounting is used to account for one organization's investment in another (the…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.