Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 15, Problem E15.12E
Accounting for equity investments
Learning Objective 3, 4
Strategic Investments completed the following investment transactions during 2018:
Jan. 14 Purchased 800 shares of Phyflexon stock, paying $50 per share. The Investment represents 4% ownership in Phyflexon's voting stock. Strategic does not have significant influence over Phyflexon. Strategic intends to hold the investment for the indefinite future.
Aug. 22 Received a cash dividend of $0.24 per share on the Phyflexon stock.
Dec. 31 Adjusted the Investment to its current market Value of 545 per share.
31 Phyflexon reported net income of 5330,000 for the year ended 2018.
Requirements
- Journalize Strategic's investment transactions. Explanations are not required.
- Classify and prepare a partial
balance sheet for Strategic's Phyflexon investment as of December 31, 2018. - Prepare a partial income statement for Strategic Investments for year ended December 31, 2018.
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Chapter 15
McDaniel Corporation manufactures surveying equipment. Journalize the entries to record the following selected equity investment
transactions completed by McDaniel during 2019:
February 26
Purchased for cash 1,350 shares of Demon Inc. stock for $70 per share plus a $75 brokerage commission.
April 16
Received dividends of $0.75 per share on Demon Inc. stock.
June 18
Purchased 600 shares of Demon Inc. stock for $68 per share plus a $50 brokerage fee.
August 19
Sold 1,500 shares of Demon Inc. stock for $72 per share less a $100 brokerage commission. McDaniel assumes that
the first investments purchased are the first investments sold.
November 14
Received dividends of $0.44 per share on Demon Inc. stock.
Prepare the journal entries to record the following non-strategic investment transactions of Ace Investment Corporation that occurred during the year 2020.
April 16 Bought 3,000 common shares of Aby Motors Co. at $22.50 per share
August 1 The Board of Directors of Aby Motors Co. declared a dividend of $1.25 per common share to shareholders of record of August 10, payable on August 15
August 15 Received the Aby Motors Co. dividend
October 20` Sold the Aby Motors Co. shares at $27.00
Chapter 15 Solutions
Horngren's Accounting (12th Edition)
Ch. 15 - Prob. 1QCCh. 15 - Which of the following investments is most likely...Ch. 15 - Prob. 3QCCh. 15 - A company invested $45,000 in Yale Co. stock. The...Ch. 15 - Prob. 5QCCh. 15 - Prob. 6QCCh. 15 - Prob. 7QCCh. 15 - Prob. 8QCCh. 15 - Prob. 9QCCh. 15 - Prob. 10QC
Ch. 15 - Prob. 1RQCh. 15 - Prob. 2RQCh. 15 - Prob. 3RQCh. 15 - Prob. 4RQCh. 15 - Prob. 5RQCh. 15 - Prob. 6RQCh. 15 - Prob. 7RQCh. 15 - Prob. 8RQCh. 15 - Prob. 9RQCh. 15 - Prob. 10RQCh. 15 - Prob. 11RQCh. 15 - Prob. 12RQCh. 15 - Prob. 13RQCh. 15 - Prob. 14RQCh. 15 - Prob. S15.1SECh. 15 - Prob. S15.2SECh. 15 - Prob. S15.3SECh. 15 - Prob. S15.4SECh. 15 - Prob. S15.5SECh. 15 - Prob. S15.6SECh. 15 - Prob. S15.7SECh. 15 - Accounting for debt investments Learning Objective...Ch. 15 - Prob. E15.9ECh. 15 - Prob. E15.10ECh. 15 - Prob. E15.11ECh. 15 - Accounting for equity investments Learning...Ch. 15 - Prob. E15.13ECh. 15 - Prob. E15.14ECh. 15 - Prob. E15.15ECh. 15 - Prob. E15.16ECh. 15 - Prob. E15.17ECh. 15 - Prob. P15.18APGACh. 15 - Prob. P15.19APGACh. 15 - Prob. P15.20APGACh. 15 - Accounting for debt investments Learning Objective...Ch. 15 - Prob. P15.22BPGBCh. 15 - Prob. P15.23BPGBCh. 15 - Prob. P15.24CTCh. 15 - Prob. 25CPCh. 15 - Prob. 15.1TIATCCh. 15 - Prob. 15.1DCCh. 15 - Prob. 15.1EICh. 15 - Prob. 15.1FCCh. 15 - Prob. 15.1FSC
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