Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
5th Edition
ISBN: 9780134077345
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 10, Problem 10.22BP
Accounting for stock investments
The beginning
During the year, Water Source completed the following investment transactions:
| Mar. 3 | Purchased 6,000 shares at $7 per share of Jack Software common stock as a long-term, available-for-sale investment, representing 3% ownership. |
| May 15 | Received a cash dividend of $0.53 per share on the Jack investment. |
| Dec. 15 | Received a cash dividend of $1 10,000 from Larsen investment. |
| 31 | Received Larsen's annual report showing $110,000 of net income. |
| 31 | Received Jack's annual report showing $600,000 of net income for the year. |
| 31 | Larsen's stock fair value at year-end was $728,500. |
| 31 | Jack's common stock fair value at year-end was $10 per share. |
Requirements
1. Journalize the transactions for the year of Water Source.
2.
3. Prepare Water Source's partial balance sheet at December 31, 2016, from your answers in Requirement 2.
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The 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.
The following equity investment transactions were completed by Vintage Company during a recent year:
Apr.
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Dec.
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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
Investments-Delew Company Stock
Cash
July 8 - Dividend
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Sept. 10 - Sale
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The following equity investment transactions were completed by Romero Company during a recent year:
Apr. 10.
Purchased 2,800 shares of Dixon Company for a price of $61.5 per share plus a brokerage commission of $1,400.
July 8.
Received a quarterly dividend of $0.7 per share on the Dixon Company investment.
Sept. 10.
Sold 1,900 shares for a price of $55 per share less a brokerage commission of $780.
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
July 8 - Dividend
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Chapter 10 Solutions
Horngren's Financial & Managerial Accounting Plus Mylab Accounting With Pearson Etext -- Access Card Package (5th Edition) (miller-nobles Et Al., The Horngren Accounting Series)
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