ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
12th Edition
ISBN: 9781260824292
Author: Christensen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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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.
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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.
▸
Prepare journal entries to record the following transactions involving the short-term stock investments of Duke Co., all of which occurred during the current year. 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.
Required 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 Method
Chapter 2 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
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
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