Stock Investments Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable. To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

Question

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Answer 1

Question

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

c.

To determine

To prepare: Investment section of Balance sheet.

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Answer 2

Question

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

c.

To determine

To prepare: Investment section of Balance sheet.

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Answer 3

Question

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

c.

To determine

To prepare: Investment section of Balance sheet.

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Answer 4

Question

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

c.

To determine

To prepare: Investment section of Balance sheet.

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Answer 5

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

c.

To determine

To prepare: Investment section of Balance sheet.

Answer 6

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

Answer 7

Chapter 12, Problem 12.3BP

(a)

To determine

Stock Investments

Stock investments are generally known as investments in common stock of company. The accounting treatment for stock investment is depends upon the investor’s influence over the company. If investor owns less than 20% then cost method will be applicable, 20%-50%, equity method will be applicable, and more than 50% consolidated financial statements method will be applicable.

To prepare: Journal entries for stock investments in the books of B Associates and post to the Investment account (T-account).

Answer 8

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

Answer 9

b.

To determine

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

Answer 10

c.

To determine

To prepare: Investment section of Balance sheet.

Answer 11

c.

To determine

To prepare: Investment section of Balance sheet.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - Prob. 4Q Ch. 12 - 5 What is the cost of an investment in stock? Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Prob. 9Q Ch. 12 - Prob. 10Q

To prepare: Adjusting Journal entries in the books of B Associates to report the portfolio at fair value.

To prepare: Investment section of Balance sheet.

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Chapter 12 Solutions