Please do B,C,E,F Required information[The following information applies to the questions displayed below.]The following information pertains to Rossow Corporation and its investee Reimer Company:a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000;b. Reimer reported $50,000 net income on December 31, 2021;c. Reimer's stock price was $33 on December 31, 2021;d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022;e. Reimer reported $50,000 net income on December 31, 2022; andf. Reimer's stock price was $28 on December 31, 2022.Required:1. Prepare journal entries to record the facts in the case, assuming Rossow owns less than 10 percent of Reimer's stock. (If no entry isrequired for a transaction/event, select "No Journal Entry Required" in the first account field.)Answer is not complete.NoDateGeneral JournalDebitCreditAJuly 12, 2021Investment in Marketable Equity Securities30,000 OCash30,000 OBDecember 31, 202 No Transaction RecordedDecember 31, 202 No Transaction RecordedMay 01, 2022Cash2,000 ODividend Revenue2,000 OEDecember 31, 202 No Transaction RecordedFDecember 31, 2021 No Transaction Recorded

Investment Accounting: When money is used to purchase an investment instrument, the accounting for…

[The following information applies to the questions displayed below.] The following information pertains to Rossow Corporation and its investee Reimer Company: a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000; b. Reimer reported $50,000 net income on December 31, 2021; c. Reimer's stock price was $33 on December 31, 2021; d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022; e. Reimer reported $50,000 net income on December 31, 2022; and f. Reimer's stock price was $28 on December 31, 2022.

[The following information applies to the questions displayed below.] The following information pertains to Rossow Corporation and its investee Reimer Company: a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000; b. Reimer reported $50,000 net income on December 31, 2021; c. Reimer's stock price was $33 on December 31, 2021; d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022; e. Reimer reported $50,000 net income on December 31, 2022; and f. Reimer's stock price was $28 on December 31, 2022.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

See similar textbooks

Similar questions

! Required information [The following information applies to the questions displayed below.] The following information pertains to Rossow Corporation and its investee Reimer Company: a. Rossow purchased 1,900 shares of Reimer on July 12, 2021, for $72,200; b. Reimer reported $45,000 net income on December 31, 2021; c. Reimer's stock price was $44 on December 31, 2021; d. Reimer declared and paid a $3 per share cash dividend on May 1, 2022; e. Reimer reported $45,000 net income on December 31, 2022; and f. Reimer's stock price was $39 on December 31, 2022. 2. Prepare journal entries to record the facts in the case, assuming Rossow owns 43 percent of Reimer's stock. Reimer reported $45,000 of net income each year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A B C Record the purchase of 1,900 shares (43%) of Reimer Company for $72,200. The company will record the investment…
Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’s net income for the year ended December 31, 2021, was $80 million. The fair value of the shares held by Chow was $35 million at December 31, 2021. KT did not declare or pay a dividend during 2021.Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30 million. Prepare the journal entry Chow would use to record the sale.
An investor company purchased 17,000 of the 50,000 outstanding shares of the investee company's common stock for $338,000 on January 1, 2021. During 2021, the investee company declared dividends of $33,000 and reported earnings for the year of $158,000. If the investor company uses the equity method of accounting for its investment in the investee company, it should report Dividend Revenue from the investee for 2021 in the amount of $_______. (If there is no Dividend Revenue, then enter 0. Do not round your answer for any part of the computation.)
An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's common stock on January 1, 2021. During 2021, the investee company reported earnings for the year of $459,000, and declared and paid an $0.52 per share cash dividend during 2021. If the investor company uses the fair value method of accounting for its investment in the investee company, it should report Dividend Revenue from the investee for 2021 in the amount of $_______. (If there is no Dividend Revenue, then enter 0. Do not round your answer for any part of the computation.)
Shakey Corporation owned 30,000 Ordinary shares of Macdo Corporation purchased in 2019 for P 540,000. On September 20, 2019, Shakey declared a property dividend of 1 share of Macdo for every 5 shares of Shakey held by a shareholder. On that date, there were 50,000 Ordinary shares of Shakey outstanding and the market value of Macdo shares was P 30 per share. The entry to record the declaration of the property dividend would include a debit to Retained Earnings of how much?
An investor company purchased 121,000 of the 250,000 outstanding shares of the investee company's common stock for $79,000 on January 1, 2021. During 2021, the investee company declared and paid dividends of $55,000 and reported earnings for the year of $355,000. If the investor company uses the equity method of accounting for its investment in the investee company, its Equity Investment in the investee company account at December 31, 2021 should be $____________. (Do not round your answer for any part of the computation.)
Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2021. During 2021, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000. If Blanco Company used the fair value method of accounting for its investment in Darby Company, its Equity Investments (Darby) account on December 31, 2021 should be: a. $580,000 b. $660,000 c. $600,000 d. $680,000 If Blanco Company uses the equity method of accounting for its investment in Darby Company, its Equity Investments (Darby) account at December 31, 2021 should be: a. $580,000 b. $600,000 c. $660,000 d. $680,000
Jon company owns two financial investments in the shares of listed companies. With the following details: Investment 1 - Acquired on september 1, 2020 at a cost of $50,000 with a fair value of $60,000 at year end for the purpose of trading. Investment 2 - Acquired on august 1, 2020 at a cost of $25,000 to hold indefinitely. Its fair value at year end is $20,000. What are the amounts to appear in the statement of Comprehensive Income for the year ended september 30, 2020?
On January 1, 2021, an investor company acquired 25% of an investee company's common stock for $2,880,000. As a result of this transaction, the investor can exert significant influence over the investee. During each year ended December 31, 2021 and 2022 the investee reported $576,000 of net income and $240,000 of dividends. On January 1, 2021, the book value of the investee's net assets was $9,600,000 and all individual net assets had appraised fair values that equaled their reported book values. On December 31, 2022, what is the balance of the Equity Investment account on the Investor's balance sheet? Select one: a. $3,048, 000 b. $2,880,000 c. $3,552,000 d. $2,964,000
Bloomfield Bakers accounts for its investment in Clor Confectionary under the equity method. Bloomfield carried the Clor investment at $150,650 and $165,150 at December 31, 2020, and December 31, 2021, respectively. During 2021 Clor recognized $75,250 of net income and paid dividends of $20,150. Assuming that Bloomfield owned the same percentage of Clor throughout 2021, its percentage ownership must have been: (Round your answer to the nearest whole percent): Multiple Choice 19%. 26%. 24%. 72%.
For the last two years, Margaret Lane has Invested in the shares of Garod Inc. Details of her purchases and sales of these shares are as follows: Shares Purchased (Sold) Per Share Value January 2020 Purchase 300 $4.75 July 2020 Purchase 200 5.25 November 2020 Sale (250) 5.40 July 2021 Purchase 400 5.50 December 2021 Sale (150) 4.80 Determine Ms. Lane's taxable capital gains and allowable capital losses for 2020 and 2021.