EX 15 - 6 Entries for equity investments: 20 On January 4, 2014, Ferguson Companypurchas for a price of $30 per share common stock directly from one of the founders for aprice of $30 per share. Silva has 1, 200,000 shares outstanding, including the Danielsshares. On July 2, 20Y4, Silva paid $750,000 in total dividends to its shareholders. OnDecember 31, 2014, Silva reported a net income of $2,000,000 for the year. a. Journalizethe Ferguson Company entries for the transactions involving its investment in SilvaCompany during 2014. b. Determine the December 31, 20Y4, balance of the investmentin Silva Company stock account.

Journal entries are made to record the transactions as the first process in the books of accounts…

Answered: EX 15 - 6 Entries for equity…

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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Question 1: Relates to Chapter 2 - Investments in Equity Securities Baskin purchased 20,000 common shares (20%) of Robbin on January 1, Year 5, for $275,000 and classified the investment as FVTPL. Robbin reported net income of $85,000 in Year 5 and $90,000 in Year 6, and paid dividends of $40,000 in each year. Robbin’s shares were trading at $16 per share on December 31, Year 5, and January 1, Year 6. On January 1, Year 6, Baskin obtained significant influence over the operating, investing, and financing decisions of Robbin when the controlling shareholder sold some shares in the open market and lost control over Robbin. Accordingly, the investment in Robbin was reclassified to an investment in associate. On December 31, Year 6, Baskin sold its investment in Robbin for $17 per share. Required: Prepare all journal entries for Years 5 and 6 related to Baskin’s investment in Robbin Note: Kindly provide answer in journal entries (proper format) in debit, Credit and Account name…
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Exercise 11-13: Whitacre Company’s stockholders’ equity section of the balance sheet on December 31, 2015, was as follows: Common stock, $10 par value, 60,000 shares issued and outstanding $600,000 Additional pain-in capital 480,000 Retained earnings 1,240,000 Total stockholders’ equity $2,320,000 On May 1, 2016, Whitacre declared and issued a 15% stock dividend, when the stock was selling for $20 per share. The on November 1, it declared and issued a 2-for-1 stock split. How many shares of stock are outstanding at year-end? What is the par value per share of these shares? Develop the stockholders’ equity category of Whitacre’s balance sheet as of December 31, 2016.
Question 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share account (stated value $5 per share). The treasury share account showed $720 (cost $6 per share). No dividends were paid during the first two years. During 2020 the company declared and paid a cash dividend at $1.50 per share. Calculate the total amount of the 2020 cash dividend.
general journal entries
Exercise 6.4 Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 100,000 shares of OMR 5 par common stock . During 2018, Roberto had the following transactions relating to shareholders' equity: 1. Issued 10,000 common stock at OMR 7 per share. 2. Issued 20,000 common stock at OMR 8 per share. 3. Reported a net income of OMR 100,000. 4. Paid dividends of OMR 50,000. 5. Purchased 3,000 treasury stock at OMR 10 (part of the 20,000 stock issued at OMR 8). Required • Prepare the journal entries for the above transactions. • Prepare the shareholders' equity section of Roberto's statement of financial position as of December 31, 2018
Equity MethodOn January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 35% of The Mayfair Corporation's outstanding common shares. During 2011, Mayfair reported net earnings of $2.25 million and paid a cash dividend of $0.15 per share. During 2012, Mayfair reported a net loss of $180,000 and again paid a dividend of $0.15 per share. Calculate the book value of Miller's investment in Mayfair as of December 31, 2011, and December 31, 2012. 2011 Answer 2012 Answer
Entries for equity investments: 20%-50% ownership On January 4, 20Y4, Ferguson Company purchased 122,500 shares of Silva Company's common stock directly from one of the founders for a price of $37 per share. Silva has 350,000 shares outstanding, including the Daniels shares. On July 2, 20Y4, Silva paid $355,000 in total dividends to its shareholders. On December 31, 20Y4, Silva reported a net income of $1,125,000 for the year. a. Journalize the Ferguson Company entries for the transactions involving its investment in Silva Company during 20Y4. If an amount box does not require an entry, leave it blank. 20Y4, Jan. 4 20Y4, July 2 20Y4, Dec. 31 b. Determine the December 31, 20Y4, balance of Investment in Silva Company Stock. $
Exercise 14-03 a-b (Video) On January 1, 2020, Oriole Corporation had $1,160,000 of common stock outstanding that was issued at par. It also had retained earnings of $747,500. The company issued 37,500 shares of common stock at par on July 1 and earned net income Journalize the declaration of a 15% stock dividend on December 10, 2020, for the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is re Entry" for the account titles and enter 0 for the amounts.) b. No. Account Titles and Explanation a. Par value is $10, and market price is $18. Par value is $5, and market price is $22. b. Debit LINK TO TEXT Credit Click if you would like to Show Work for this question: Open Show Work VIDEO: SIMILAR EXERCISE
QUESTION 20 The shareholders' equity section of Jason Company as of December 31, 2017, was as follows: Common stock $180,000 Additional paid-in capital (Common stock) 110,000 Retained earnings 160,000 Total shareholders' equity $450,000 . On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15? A credit to Retained Earnings for $90,000 A debit to Cash for $90,000 A debit to Treasury Stock for $90,000 A debit to Common Stock for $90,000 None of these choices is correct.
15 Masters Inc. Partial Balance Sheet December 31, 2020 Shareholders' Equity Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000 shares issued $100,000 Common shares, unlimited number of shares authorized, 100,000 shares issued 350,000 Total contributed capital 450,000 Retained earnings 170,000 Total shareholders' equity $620,000 Assume that the preferred shares are not cumulative and that no dividends have been declared in 2017, 2018, and 2019. Prepare the journal entry…
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