Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter C, Problem 3QS
Summary Introduction
Concept Introduction:
Investments are classified into short term investments and long term investment according the period of holding the investment. A long term investment is held for a period of more than one year. Long term investments are generally made to gain the safe and steady growth of the investment.
To prepare: the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Prepare Riley Company’s journal entries to record the following transactions for the current year. Apr. 18 Purchases 300 common shares of XLT Co. as a short-term investment at a cost of $42 per share. With this stock investment, Riley has an insignificant influence over XLT. May 30 Receives $1 per share from XLT in dividends.
Prepare Riley Company's journal entries to record the following transactions for the current year.
April
18
Purchases 410 common shares of XLT Co. as a short-term investment at a cost of $53 per share. With this stock investment, Riley has an insignificant influence over XLT.
May
30
Receives $1.00 per share from XLT in dividends.
Purchases 410 common shares of XLT Co. as a short-term investment at a cost of $53 per share. With this stock investment, Riley has an insignificant influence over XLT on April 18.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Apr 18
Receives $1.00 per share from XLT in dividends on May 30.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
May 30
Prepare Riley Company's journal entries to record the following transactions for the current year.
April 18 Purchases 340 common shares of XLT Company as a short-term investment at a cost of $46 per share. With this
stock investment, Riley has an insignificant influence over XLT.
May 30 Receives $1.40 per share from XLT in dividends.
View transaction list
Journal entry worksheet
1
2
Purchases 340 common shares of XLT Company as a short-term investment at
a cost of $46 per share. With this stock investment, Riley has an insignificant
influence over XLT.
Note: Enter debits before credits.
Date
April 18
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Chapter C Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Journ Co. purchased short-term investments in...Ch. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Complete the following descriptions by filling in...Ch. C - Complete the following descriptions by filling in...Ch. C - Prob. 15QSCh. C - Prob. 17QSCh. C - Complete the following descriptions by filling in...Ch. C - Prob. 2ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Use the following information of Prescrip Co. to...Ch. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Complete the following descriptions by filling in...Ch. C - Prob. 14ECh. C - Prob. 1PSACh. C - Prob. 3PSACh. C - Prob. 4PSACh. C - Prob. 5PSACh. C - Prob. 6PSACh. C - Prob. 1PSBCh. C - Prob. 3PSBCh. C - Prob. 4PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 1GLPCh. C - Prob. 2GLPCh. C - Prob. 1FSACh. C - Prob. 2FSACh. C - Prob. 3FSACh. C - Prob. 2BTN
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
- Prepare journal entries to record the following investment-related transactions of a company for its first year of operations: On May 4, the company purchased 600 shares of Orbital Company Stock at $140 per share as a short-term investment in an available-for-sale security. On July 1, received a $2.50 per share cash dividend on the Orbital Company stock purchased in transaction (a). On September 15, sold 250 shares of Orbital Company stock purchased in transaction (a) for $85 per share On October 15, sold 100 shares of Orbital Company stock purchased in transaction (a) for $185 per sharearrow_forwardFeb. 2 Purchased for cash 500 shares of Braxter Co. stock for $34 per share plus a $250 brokerage commission. Apr. 16 Received dividends of $0.35 per share on Braxter Co. stock. June 17 Sold 100 shares of Braxter Co. stock for $40 per share less a $100 brokerage commission. Required: Journalize the entries to record the above selected equity investment transactions completed by Flurry Company during the current year. Flurry’s purchase represents less than 20% of the total outstanding Braxter Co. stock. Refer to the Chart of Accounts for exact wording of account titles.arrow_forwardPrepare journal entries to record the following transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. a. On February 15, paid $160,000 cash to purchase GMI’s 90-day short-term notes at par, which are dated February 15 and pay 10% interest (classified as held-to-maturity). b. On March 22, bought 700 shares of Fran Inc. common stock at $51 cash per share. Cancun’s stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days’ interest on the notes purchased in part a. d. On July 30, paid $100,000 cash to purchase MP Inc.’s 8%, six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $1 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 30 shares of Fran Inc. common stock for $54 cash per share. g. On October 30, received a…arrow_forward
- Journalize the entries to record the following selected equity investment transactions completed by Perry Company during the current year. Perry accounts for this investment using the cost method. Feb. 2 Purchased for cash 900 shares of Dexter Co. stock for $54 per share plus a $450 brokerage commission. This represents a less than 10% ownership interest in the company. Apr. 16 Received dividends of $0.25 per share on Dexter Co. stock. June 17 Sold 200 shares of Dexter Co. stock for $70 per share less a $500 brokerage commission. Aug. 19 Purchased 600 shares of Dexter Co. stock for $65 per share plus a $300 brokerage commission. Nov. 14 Received dividends of $0.30 per share on Dexter Co. stock. If an amount box does not require an entry, leave it blank. Feb. 2 fill in the blank 2 fill in the blank 4 Apr. 16 fill in the blank 6 fill in the blank 8 June 17 fill in the blank 10 fill in the blank 11 fill in the blank 13 fill in the…arrow_forwardPrepare 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.arrow_forwardJournalize the entries to record the following selected equity investment transactions completed by Perry Company during the current year. Perry accounts for this investment using the cost method. Feb. 2 Purchased for cash 900 shares of Dexter Co. stock for $54 per share plus a $450 brokerage commission. This represents a less than 10% ownership interest in the company. Apr. 16 Received dividends of $0.25 per share on Dexter Co. stock. June 17 Sold 200 shares of Dexter Co. stock for $70 per share less a $500 brokerage commission. Aug. 19 Purchased 600 shares of Dexter Co. stock for $65 per share plus a $300 brokerage commission. Nov. 14 Received dividends of $0.30 per share on Dexter Co. stock.arrow_forward
- On September 1, Leather Suppliers, Incorporated, purchases 200 shares of Western Wear Clothing for $11.30 per share. On November 1, Leather Suppliers sells the investment for $13.60 per share. How will the purchase and sale of the investment in Western Wear Clothing affect the financial statements of Leather Suppliers? Complete this question by entering your answers in the tabs below. Sep 1 Nov 1 On September 1, Leather Suppliers, Incorporated, purchases 200 shares of Western Wear Clothing for $11.30 per share. Note: Amounts to be deducted should be indicated by a minus sign. Balance Sheet Investments Assets 2,260 Liabilities Stockholders' Equity Common Stock Retained Earnings Income Statement Expenses & Losarrow_forwardPrepare the journal entries for the following transactions for Batson Co. Sept. 1 Batson Co. purchased 1,200 shares of the total of 100,000 outstanding shares of Michael Corp. stock for $20.75 per share plus a $70 commission. Dec. 31 Michael Corp.’s total earnings for the period are $84,000. 31 Michael Corp.’s paid a total of $40,000 in cash dividends to shareholders of record.arrow_forwardPrepare entries to record the following transactions of Garcia Company. 2019 Jan. 1 Purchased 400 shares of Lopez Co. common stock for $3,000 cash. Lopez has 1,000 shares of common stock outstanding, and its policies will be significantly influenced by Garcia. Aug. 1 Lopez declared and paid a cash dividend of $2 per share. Dec. 31 Lopez reported net income for the year of $2,500. 2020 Aug. 1 Lopez declared and paid a cash dividend of $2.25 per share. Dec. 31 Lopez reported net income for the year of $2,750. 2021 Jan. 1 Garcia sold 100 shares of Lopez for $1,300 cash.arrow_forward
- Assume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at a price of $22 per share plus a $240 brokerage fee. On April 22, a $0.42- per-shares dividend was received on the Gilbert Co. stock. On May 10, 4,000 shares of the Gilbert Co. stock was sold for $28 per share less a $160 brokerage fee. What accounts would be credited on April 22 for the receipt of the divided on the Gilbert Co. Stock? DATE DESCRIPTION PREF DEBIT CREDIT Apr. 22 (?) $2,520 (?) $2,520 Investments – Gilbert Co. Stock Dividend receivable Cash Dividend revenue O000arrow_forwardAssume that on February 12, First Union Co. purchases for cash 6,000 shares of Gilbert Co. stock at a price of $22 per share plus a $240 brokerage fee. On April 22, a $0.42- per-shares dividend was received on the Gilbert Co. stock. On May 10, 4,000 shares of the Gilbert Co. stock was sold for $28 per share less a $160 brokerage fee. What accounts would be debited on February 12 for the purchase of the 6,000 shares of Gilbert Stock? DATE DESCRIPTION PREF DEBIT CREDIT Feb. 12 (?) $132,240 (?) $132,240 Investments – Gilbert Co. Stock Dividend receivable Cash Dividend revenuearrow_forwardThe following equity investment transactions were completed by Romero Company during a recent year:Apr. 10. Purchased 5,000 shares of Dixon Company for a price of $25 per share plus a brokerage commission of $75.July 8. Received a quarterly dividend of $0.60 per share on the Dixon Company investment.Sept. 10. Sold 2,000 shares for a price of $22 per share less a brokerage commission of $120.Journalize the entries for these transactions.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Financial instruments products; Author: fi-compass;https://www.youtube.com/watch?v=gvxozM3TUIg;License: Standard Youtube License