Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 2, Problem 2.18P
Changes ¡n the Number of Shares Held
Idle Corporation hasbeen acquiring shares of Fast Track Enterprises at book value forthe last several years Fast Track provided data including the following:
Fast Track declares hind pays its annual dividend on November 1 5 each year. Its net book value on
January 1, 20X2, was $250,000. Idle purchased shares of Fast Track on three occasions:
Required
Give the journalentries to be recorded on Idle’s hooks in 20X5 related to its investment in FastTrack.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What amount of dividend income should be reported for the current
year?
Current Attempt in Progress
Pharoah Corporation sells 210 shares of common stock being held as an investment. The shares were acquired six months ago at a
cost of $50 a share. Pharoah sold the shares for $56 a share. The entry to record the sale is
Cash
Gain on Sale of Stock
Investments
Stock Investments
Cash
Stock Investments
11760
1260
10500
11760
11760
Cash
10500
Loss on Sale of Stock
1260
Investments
Stock Investments
11760
Stock Investments
11760
Cash
11760
Required information
[The following information applies to the questions displayed below.]
a. On March 22, purchased 1,000 shares of RPI Company stock at $10 per share. Duke's stock investment results in
it having an insignificant influence over RPI.
b. On July 1, received a $1 per share cash dividend on the RPI stock purchased in part a.
c. On October 8, sold 50 shares of RPI stock for $15 per share.
Prepare journal entries to record the given transactions involving the short-term stock investments of Duke Company, all of which
occurred during the current year.
View transaction list
Journal entry worksheet
On March 22, purchased 1,000 shares of RPI Company stock at $10 per share.
Duke's stock investment results in it having an insignificant influence over RPI.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
a.
▸
Chapter 2 Solutions
Advanced Financial Accounting
Ch. 2 - What types of investments in common stock normally...Ch. 2 - Prob. 2.2QCh. 2 - Describe an investor’s treatment of an investment...Ch. 2 - How is the receipt of a dividend recorded under...Ch. 2 - How does carrying securities at fair value...Ch. 2 - Prob. 2.6QCh. 2 - Prob. 2.7QCh. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - How are a subsidiary’s dividend declarations...Ch. 2 - Prob. 2.12QCh. 2 - Give a definition of consolidated retained...Ch. 2 - Prob. 2.14QCh. 2 - Prob. 2.15QCh. 2 - Prob. 2.16AQCh. 2 - When is equity method reporting considered...Ch. 2 - How does the fully adjusted equity method differ...Ch. 2 - What is the modified equity method? When might a...Ch. 2 - Choice of Accounting Method Slanted Building...Ch. 2 - Prob. 2.2CCh. 2 - Prob. 2.3CCh. 2 - Prob. 2.4CCh. 2 - Prob. 2.5CCh. 2 - Prob. 2.6CCh. 2 - Prob. 2.1.1ECh. 2 - Multiple-Choice Questions on Accounting for Equity...Ch. 2 - Prob. 2.1.3ECh. 2 - Prob. 2.1.4ECh. 2 - Multiple-Choice Questions on Intercorporate...Ch. 2 - Prob. 2.2.2ECh. 2 - Prob. 2.3.1ECh. 2 - Prob. 2.3.2ECh. 2 - Prob. 2.3.3ECh. 2 - Prob. 2.4ECh. 2 - Acquisition Price Phillips Company bought 40...Ch. 2 - Prob. 2.6ECh. 2 - Prob. 2.7ECh. 2 - Carrying an investment at Fair Value versus Equity...Ch. 2 - Carrying an Investment at Fair Value versus Equity...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12ECh. 2 - Prob. 2.13ECh. 2 - Income Reporting Grandview Company purchased 40...Ch. 2 - Investee with Preferred Stock Outstanding Reden...Ch. 2 - Prob. 2.16AECh. 2 - Prob. 2.17AECh. 2 - Changes ¡n the Number of Shares Held Idle...Ch. 2 - Investments Carried at Fair Value and Equity...Ch. 2 - Carried at Fair Value Journal Entries Marlow...Ch. 2 - Consolidated Worksheet at End of the First Year of...Ch. 2 - Consolidated Worksheet at End of the Second Year...Ch. 2 - Prob. 2.23PCh. 2 - Prob. 2.24PCh. 2 - Prob. 2.25APCh. 2 - Equity-Method income Statement Wealthy...Ch. 2 - Prob. 2.27BPCh. 2 - Prob. 2.28BP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Way Inc. obtained significant influence by buying 40% of Sonic Inc's 4,800 outstanding shares of common stock at a cost of $8 per share on January 1, 2025. On December 31, Sonic declared and paid a $2,900 cash dividend and reported net income of $18,900 for the year. Post all transactions and determine the account balance of the Stock Investments account. Jan. 1 Dec. 31 Dec. 31 Bal. Stock Investments 15,360 Dec. 31 Revenue from Stock Investments Dec. 31arrow_forwardRequired information [The following information applies to the questions displayed below.] Company T had 35,000 outstanding shares of common stock, par value $12 per share. On January 1 of the current year, Company P purchased some of Company T's shares as a long-term investment at $25 per share. At the end of the current year, Company T reported the following: income, $51,000, and cash dividends declared during the year, $22,500. The fair value of Company T stock at the end of the current year was $22 per share. Required: 1. For each of the following situations, identify the method of accounting that Company P should use. 4,200 shares purchased 10,500 shares purchased Accounting Methodarrow_forwardanswer with all work like explanation ,narrations computation for each steps and parts answer in text form .arrow_forward
- answer in text form please (without image), Note: .Every entry should have narration pleasearrow_forwardWW Corp. resells 500 shares of its own common stock for $22 per share. WW had acquired these shares two months before for $25 per share. The resale of this stock would be recorded with a: Select one: a. Debit to Cash for $12,500 b. Credit to Additional Paid-In Capital for $1,500 c. Debit to Common Stock for $12,500 d. Debit to Additional Paid-In Capital for $1,800 e. Credit to Treasury Stock for $12,500arrow_forwardDont uplode images in answer Journalize the following: a) Purchased 1200 shares of Spring Corporation common stock at $15 per share plus a brokerage fee of $50. Spring Corporation has 20,000 shares outstanding. b) Purchased an influential interest in Sunshine Co. for $45000 by purchasing 4,800 shares of the 10,000 of the outstanding. c) Received a cash dividend of $.50 per share on the Spring Corporation stock acquired in (a). d) Received a cash dividend of $1.00 per share on the Sunshine Co. stock acquired in (b). e) Sunshine Co. reported net income of 100,000. Recorded the appropriate amount of Sunshine Co. net income using the percentage of stock acquired in (b).arrow_forward
- don't give answer in image formatarrow_forwardThe Timog Corporation bought the shares of Luna Company classified as equity investments at fair value through other comprehensive income, as follows: April 17, 2022 1,000 shares at P84 July 16, 2022 2,000 shares at P90 Market value per share of Luna Company shares at December 31, 2022 was P92. The following were the transactions for 2023: January 10 Received cash dividend at P4 per share. June 20 Received 5% bonus issue. December 10 Sold 1,200 shares at P105 per share. How much is the total dividend revenue for the year 2023? (А) Р13,800 (В) Р12,000 C P25,800 (D POarrow_forwardCurrent Attempt in Progress The outstanding capital stock of Bramble Corporation consists of 1,800 shares of $100 par value, 7% preferred, and 4,500 shares of $50 par value common. Assuming that the company has retained earnings of $86,500, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. a. The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.) LA Preferred b. The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. 38,487.) LA Preferred Common c. The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. 38,487.) Preferred tA Common Commonarrow_forward
- answer in text form please (without image), Note: .Every entry should have narration pleasearrow_forwardDon't give answer in image formatarrow_forwardQuestion 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…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License