Ertnes for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Ap 10. Purchased 11,000 shares of Delew Company's common stock for a price of $60 per share plus a brokerage commission of $220. Delew Company has 250,000 shares of common stock outstanding. My 8. Received a quarterly dividend of $0.85 per share on the Delew Company investment. Sept. 10. Sold 3,000 shares for a price of $54 per share less a brokerage commission of $90. Dec. 31. At the end of the accounting period, the fair value of the remaining 8,000 shares of Delew Company's stock was $59.90 per share Mumalire the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar. Ar 10- Purchase (vaatments Defen Company Stick V 460.220 July Ovvidend Ch Dec. 31 Check My Wrk ✓ -V 00 000 0 9,350 161910 444,220 1.350 0000

Ertnes for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Ap 10. Purchased 11,000 shares of Delew Company's common stock for a price of $60 per share plus a brokerage commission of $220. Delew Company has 250,000 shares of common stock outstanding. My 8. Received a quarterly dividend of $0.85 per share on the Delew Company investment. Sept. 10. Sold 3,000 shares for a price of $54 per share less a brokerage commission of $90. Dec. 31. At the end of the accounting period, the fair value of the remaining 8,000 shares of Delew Company's stock was $59.90 per share Mumalire the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar. Ar 10- Purchase (vaatments Defen Company Stick V 460.220 July Ovvidend Ch Dec. 31 Check My Wrk ✓ -V 00 000 0 9,350 161910 444,220 1.350 0000

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 15.4CPP: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,...

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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
Entries for investment in stock, receipt of dividends, and sale of sharesThe following equity investment transactions were completed byRomero Company during a recent year: Apr. 10. Purchased 5,000 shares of Dixon Company for a price of $25 pershare 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 brokeragecommission of $120. Journalize the entries for these transactions.
Entries for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10. Purchased 3,500 shares of Delew Company's common stock for a price of $51.85 per share plus a brokerage commission of $525. Delew Company has 265,000 shares of common stock outstanding. July 8. Received a quarterly dividend of $0.60 per share on the Delew Company investment. Sept. 10. Sold 2,300 shares for a price of $46 per share less a brokerage commission of $290. Dec. 31. At the end of the accounting period, the fair value of the remaining 1,200 shares of Delew Company's stock was $51.50 per share. Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar. Apr. 10 - Purchase July 8 - Dividend Sept. 10 - Sale Dec. 31
Entries for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10. Purchased 11,000 shares of Delew Company’s common stock for a price of $60 per share plus a brokerage commission of $220. Delew Company has 250,000 shares of common stock outstanding. July 8. Received a quarterly dividend of $0.85 per share on the Delew Company investment. Sept. 10. Sold 3,000 shares for a price of $54 per share less a brokerage commission of $90. Dec. 31. At the end of the accounting period, the fair value of the remaining 8,000 shares of Delew Company’s stock was $59.90 per share. Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar.
Entries for Equity Investments: Less than 20% Ownership The following equity investment transactions were completed by Vintage Company during a recent year: Apr. 10. Purchased 1,700 shares of Delew Company’s common stock for a price of $63.5 per share plus a brokerage commission of $850. Delew Company has 275,000 shares of common stock outstanding. July 8. Received a quarterly dividend of $0.40 per share on the Delew Company investment. Sept. 10. Sold 1,100 shares for a price of $57 per share less a brokerage commission of $480. Dec. 31. At the end of the accounting period, the fair value of the remaining 600 shares of Delew Company’s stock was $63.50 per share. Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. If required, round the final answers to the nearest dollar. needing help with part D
Journalize the entries to record the following 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. Feb. 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.
Journalize the entries to record the following selected equity investment transactions completed by Flurry Company during the current year. Flury's purchase represents less than 20% of the total outstanding Braxter Co. stock. Feb. 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. If an amount box does not require an entry, leave it blank. Feb. 2 Apr. 16 June 17
Journalize the entries to record the following 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. Feb. 2 Purchased for cash 500 shares of Braxter Co. stock for $34 per share plus a $250 brokerage commission. Apг. 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. If an amount box does not require an entry, leave it blank. Feb. 2 Investments-Braxter Co. Stock Cash Apr. 16 Dividend Revenue Investments-Braxter Co. Stock 3,900 June 17 Cash
Journalizing equity investment transactions; less than 20% ownershipThe following equity investment transactions were completed by Vintage Company during a recent year:DateTransactionApr. 10.Purchased 11,000 shares of Delew Companys common stock for a price of $50 per share. Delew Company has 250,000 shares of common stock outstanding.July 8.Received a quarterly dividend of $0.80 per share on the Delew Company investment.Sept. 10.Sold 4,000 shares for a price of $45 per share.Dec. 31.At the end of the accounting period, the fair value of the remaining 7,000 shares of Delew Companys stock was $47 per share.Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank.DateAccountDebitCreditApr. 10July 8Sept. 10Dec. 31
Entries for equity investments: less than 20% ownership Quan Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Quan during a recent year using the fair value method. Feb. 2 Purchased for cash 3,100 shares of Celeste Inc.’s common stock for $32 per share plus a $124 brokerage commission. Celeste Inc. has 80,000 shares of common stock outstanding. Mar. 6 Received dividends of $0.45 per share on Celeste Inc. stock. June 7 Purchased 1,400 shares of Celeste Inc. stock for $38 per share plus a $56 brokerage commission. July 26 Sold 4,000 shares of Celeste Inc. stock for $41 per share less a $100 brokerage commission. Quan assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.62 per share on Celeste Inc. stock. Dec. 31 At the end of the accounting period, the fair value of the remaining 500 shares of Celeste Inc. stock was $20,720.…
Entries for Investment in Stock, Receipt of Dividends, and Sale of Shares The following equity investment transactions were completed by Romero Company during a recent year: Apr. 10. Purchased 1,700 shares of Dixon Company for a price of $45.75 per share plus a brokerage commission of $425. July 8. Received a quarterly dividend of $0.45 per share on the Dixon Company investment. Sept. 10. Sold 1,100 shares for a price of $41 per share less a brokerage commission of $240. Journalize the entries for these transactions. If required, round the final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Apr. 10 - Purchase fill in the blank 2 fill in the blank 4 July 8 - Dividend fill in the blank 6 fill in the blank 8 Sept. 10 - Sale fill in the blank 10 fill in the blank 11 fill in the blank 13 fill in the blank 14 fill in the blank 16 fill in the blank 17
Entries for Investment in Stock, Receipt of Dividends, and Sale of Shares The following equity investment transactions were completed by Romero Company during a recent year: Apr. 10. Purchased 1,700 shares of Dixon Company for a price of $45.75 per share plus a brokerage commission of $425. July 8. Received a quarterly dividend of $0.45 per share on the Dixon Company investment. Sept. 10. Sold 1,100 shares for a price of $41 per share less a brokerage commission of $240. Journalize the entries for these transactions. If required, round the final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Apr. 10 - Purchase fill in the blank 2 fill in the blank 4 July 8 - Dividend fill in the blank 6 fill in the blank 8 Sept. 10 - Sale fill in the blank 10 fill in the blank 11 fill in the blank 13 fill in the blank 14