I need the answer as soon as possible N&G Potato Chip Company, a U.S. GAAP reporter, provides you with the following information regarding its investments in equity securities during the current year.A (Click the icon to view the investment information.)RequirementPrepare all journal entries necessary to record N&G's investment transactions for the year. Show all computations.More infoJanuary 1 (BeginningBalance: No entryrequired)N&G is currently holding 8,600 of Loyal Corporationcommon shares (publicly traded). The Loyal sharescost $23 per share. There is a debit balance of$34,400 in the fair value adjustment account. N&Gdoes not have a significant influence over the investee.N&G purchased 1,100 shares of Troy Companycommon stock for $151 per share. Troy Company ispublicly traded. N&G does not have a significantJanuary 23influence over the investee.February 4N&G acquired 140,000 of the 400,000 outstandingshares of Drudge, Inc. for a total cost of $1,092,000.Loyal Corporation paid a $3.60 per share cashMarch 23dividend.June 30Drudge, Inc. reported $1,540,000 in net income for theyear. Drudge also declared and paid a cash dividend of$2.50 per share.N&G purchased 320 bonds of the Cromer RalphGroup (CRG) at $900 par and intends to hold the debtinvestment to maturity.October 15December 31N&G accrued interest on the CRG bonds amounted to$36,000.

Answer - Working Notes : 1.) Amount spent = 1100 shares $ 151 = $166,100 2.) Dividend received from…

N&G Potato Chip Company, a U.S. GAAP reporter, provides you with the following information regarding its investments in equity securities during the current year. A (Click the icon to view the investment information.) Requirement Prepare all journal entries necessary to record N&G's investment transactions for the year. Show all computations. %3 More info January 1 (Beginning Balance: No entry required) N&G is currently holding 8,600 of Loyal Corporation common shares (publicly traded). The Loyal shares cost $23 per share. There is a debit balance of $34,400 in the fair value adjustment account. N&G does not have a significant influence over the investee. January 23 N&G purchased 1,100 shares of Troy Company common stock for $151 per share. Troy Company is publicly traded. N&G does not have a significant influence over the investee. February 4 N&G acquired 140,000 of the 400,000 outstanding shares of Drudge, Inc. for a total cost of $1,092,000. Loyal Corporation paid a $3.60 per share cash dividend. March 23 June 30 Drudge, Inc. reported $1,540,000 in net income for the year. Drudge also declared and paid a cash dividend of $2.50 per share. N&G purchased 320 bonds of the Cromer Ralph Group (CRG) at S900 par and intends to hold the debt investment to maturity. October 15 December 31 N&G accrued interest on the CRG bonds amounted to S36.000

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 2PB