QUESTION 10 On January 2 Froxel Company purchased 10,000 shares of Sandia Corporation common stock at $19 per share. This represents 30% of Sandia Corporation's outstanding stock. On August 6, Sandia Corporation declared and paid cash dividends of $1 75 per share, and on December 31 it reported net income of $150,000 3c Journalize Froxel Company's share of Sandia Corporation's December 31st net income DATE 12/31 Debit Credit
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- Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.QUESTION 24 a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE Debit Credit XIX b. For the year ended December 31, Harris Company earned income of $50,000. DATE Debit Credit XIX c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE Debit Credit XIX d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit XIX#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
- Question 19 Company P purchased 70% stock in Company S on Jan 1, 20X1 for $200,000. For the year 20X1, Company S reported the net income of $100,000 and paid dividends of $40,000. At year end, investment account in the books of Company P had a fair market value of $225,000. Under the equity method, the unrealized gain account will be credited withInstructions ait of AC Journal On February 22, Stewart Corporation acquired 7,200 shares of the 200,000 outstanding shares of Edwards Co. common stock at $42 plus commission charges of $170. On June 1, a cash dividend of $1.85 per share was received. On November 12, 3,100 shares were sold at $49 less commission charges of $165. Using the cost method, journalize the entries for (a) the purchase of stock, (b) the receipt of dividends, and (c) the sale of 3,100 shares. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.QUESTION 23 a) On September 14, 10,000 shares of Grey Company are acquired at a price of $100 per share plus a $500 brokerage fee. DATE Debit Credit XIX b) On October 15, a $0.50-per-share dividend was received on the Grey Company stock. DATE Debit Credit XIX c) On November 10, 1,500 shares of the Grey Company stock were sold for $115 per share less a $50 brokerage fee. DATE Debit Credit XIX
- Question Content Area On January 1, Vermont Corporation had 47,300 shares of $11 par value common stock issued and outstanding. All 47,300 shares had been issued in a prior period at $21 per share. On February 1, Vermont purchased 980 shares of treasury stock for $24 per share and later sold the treasury shares for $19 per share on March 1. The journal entry for the purchase of the treasury shares on February 1 would include a a. credit to a gain account for $2,940 b. credit to Treasury Stock for $23,520 c. debit to Treasury Stock for $23,520 d. debit to a loss account for $2,94045 Investments 1N 2. On Sept. 1, 20x1, Lone Co. acquires 35% of the 100,000 2. On outstanding shares of Social Co. for P1,200,000. Social Co.'s net identifiable assets are fairly valued on this date. In 20x1. Social Co. reports profit of P1,500,000 and declares and pays cash dividends of P600,000. For the year ended Dec. 31, 20x1, how much should Lone Co. report as share in the associate's profit and investment in associate, respectively? c. 175,000; 1,165,000 d. 210,000; 1,200,000 c. 350,000; 1,340,000 d. 131,250; 1,121,250 3. On Jan, 1, 20x1. Ice Co acquired 25.000 newly issued shares ofPROBLEM NO. 1 Watusi Inc. began operations in January 2021 and reported the following results for each of its 3 years of operations. 2021 P260,000 net loss P40,000 net loss P700,000 net income 2022 2023 At December 31, 2023, Watusi Inc. share capital accounts were as follows. Share Capital-Preference, 6% cumulative, par value P100; authorized, issued, and outstanding 5,000 shares Share Capital-Ordinary, par value P1.00; authorized 1,000,000 shares; issued and outstanding 750,000 shares P500,000 750,000 Watusi Inc. has never paid a cash or share dividend. There has been no change in the share capital accounts since Watusi began operations. The country law permits dividends only from retained earnings. Instructions a. Compute the book value of the ordinary shares at December 31, 2023. b. Compute the book value of the ordinary shares at December 31, 2023, assuming that the preference shares have a liquidating value of P106 per share.
- Problem 4 The Adam Corporation had the following transactions during the year: Jan. 15 Feb 15 Purchased 1,500 shares of LMN stock at S10 per share. Purchased 3,000 shares of KJL stock at $20 per share. Received dividends of $1 per share of LMN stock. Purchased $20,000 of XYZ bonds for $20,000. Interest of 9% is paid on April 15 and October 15. Sold 1,000 shares of KJL stock for $22,000. Received a $2 dividend per share for KJL stock. Received interest on XYZ bond. Sold the bonds for $21,000. Sold 500 shares of LMN stock for $5,000. Mar 15 Apr 15 Aug 15 Sep 15 Oct 15 Oct 15 Nov 15 On this day, LMN stock is selling for $19 per share and KJL stock is selling for $12 per share. Record th reflect the fair market value of the stock. Dec 31 Instructions: a. Record the transactions for the year in general journal format. b. Show how the stock investment would appear on the balance sheet on December 31.xt sec i At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies. L Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52) The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39) Saved O In year 2, Charter engaged in the following two transactions. Apr.10 Sold 1,000 shares of its investment in L Brands, Inc., at a price of $58 per share, less a brokerage commission of $100. Prev CAT Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $37 per share, less a brokerage commission of $150. At December 31, year 2, the market values of these stocks were: L Brands, Inc., $67 per share; and The Gap, Inc., $37 per share. Required: a-1. Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at December 31, year 1. a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of…