![INTERMEDIATE ACCOUNTING(LL)-W/CONNECT](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260216141/9781260216141_smallCoverImage.gif)
Concept explainers
Stock dividends received on investments; integrative problem
• LO18–8
Ellis Transport Company acquired 1.2 million shares of stock in L&K Corporation at $44 per share. They are classified by Ellis as “available for sale.” Ellis sold 200,000 shares at $46, received a 10% stock dividend, and then later in the year sold another 100,000 shares at $43.
Hint: There is no entry for the stock dividend, but a new investment per share must be calculated for use later when the shares are sold.
Required:
Prepare
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 18 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
Additional Business Textbook Solutions
Managerial Accounting: Tools for Business Decision Making
Accounting for Governmental & Nonprofit Entities
Financial Accounting (11th Edition)
Managerial Accounting (4th Edition)
Financial Accounting
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
- Testbank Multiple Choice Question 103 Sunland Company has $3110000 of short-term debt it expects to retire with proceeds from the sale of 89000 shares of common stock. There is no contractual agreement to retire the debt with the stock sale proceeds. If the stock is sold for $25 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities? O $ 2225000. O $885000. O $ 3110000. O $0, No contractual agreement to retire the debt with stock proceeds.arrow_forwardA e NO 75% Î 14:06 Vo) LTE abc SAVE Тext Pen Brush On November 12, 2013, Berube Co. repurchased 10,000 shares of its own stock at a price of $20 per share. Berube had originally issued the stock in 2010 at a price of $15 per share. Which of the following items would be decreased by the stock repurchase transaction? (check all that apply) Total Shareholders' Equity Total Assets Cash from Financing Activities Total Liabilities Accumulated Other Comprehensive Income В I U !!! I!!arrow_forwardQuestion 3 Shares of Modern Data are selling for $150 per share. There are three million shares outstanding. What will be the share price if the company repurchases 345,000 of its shares at $150 apiece? Ignore taxes. $150. $169.50. Not possible to determine. $130.5. $168.arrow_forward
- xt sec i At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies. L Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52) The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39) Saved O In year 2, Charter engaged in the following two transactions. Apr.10 Sold 1,000 shares of its investment in L Brands, Inc., at a price of $58 per share, less a brokerage commission of $100. Prev CAT Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $37 per share, less a brokerage commission of $150. At December 31, year 2, the market values of these stocks were: L Brands, Inc., $67 per share; and The Gap, Inc., $37 per share. Required: a-1. Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at December 31, year 1. a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of…arrow_forward4. How much is the gain (loss) on the sale of Mad Company ordinary shares on July 18, 2023? A. P4,500B. P3,000C. P1,500D. P0 5. What is the amount transferred to retained earnings if Jam Company opted to transfer the unrealized gain or loss relating to the shares sold? A. P11,100B. P5,500C. P5,100D. P1,500arrow_forwardRequired information 7 The par amount of the shares becomes $1 per share. 7 No journal entry is recorded. Knowledge Check 02 Craft declares and distributes a 2-for-1 stock split in the form of a 100% stock dividend and distributes 1,000 shares when the market value of the $1 par common stock is $12 per share. The company chooses not to reclassify earned capital as invested capital with regards to this transaction. Prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transactlon llst View Journal entry worksheet No Event General Joumal Debit Credit 100 1 01 Paid-in capital excess of par 100 Common stock Prev 18 of 23 Next > Question no....pages -pdf Question no....pagesarrow_forward
- Problem #36 Book Value per Share. Lusterio Corporation's ordinary share is currently selling on a stock exchange at P170 per share, and a recent statement of financial position showed the following information: Shareholders' Equity Preference Shares, 5%, P? par value, 1,000 shares authorized, issued and outstanding Ordinary Shares, P? par value, 4,000 shares authorized, issued and outstanding Retained Earnings P100,000 160,000 300,000 P560,000 Total Shareholders' Equity Required: 1. What is the market value of the ordinary shares? 2. What are the par values of the preference shares and ordinary shares? If no dividends are in arrears, what are the book values per share of the preference and ordinary shares? 3. 4. If two years' preference dividends are in arrears, what are the book values per share of the preference and ordinary shares? 5. If two years' preference dividends are in arrears and the preference shares has a liquidation value of P110 per share, what are the book values per…arrow_forwardExercise 15-14 (Algo) Accounting for equity method investments LO P5 Listed below are a few events and transactions of Kodax Company. Year 1 January 2 Purchased 67,000 shares of Grecco Company common stock for $576,000 cash. Grecco has 201,000 shares of common stock outstanding, and its activities will be significantly influenced by Kodax. September 1 Grecco declared and paid a cash dividend of $1.00 per share. December 31 Grecco announced that net income for the year is $515,400. Year 2 June 1 Grecco declared and paid a cash dividend of $1.50 per share. December 31 Grecco announced that net income for the year is $747,900. December 31 Kodax sold 14,000 shares of Grecco for $180,eee cash. Prepare journal entries to record the above transactions and events of Kodax Company. Note: Do not round intermediate calculations and round your final answers to the nearest dollar amount. View transaction list No 1 2 View journal entry worksheet Date January 2, Year 1 Equity method investments Cash…arrow_forwardRequired information 100 CORPORATION 430s Knowledge Check 01 Match the term and the definition. Might allow preferred shareholders the option to return their shares for a 1. predetermined price If the specified dividend is not paid in a given year, the unpaid dividends must be 2. made up in a later dividend year before any dividends are paid on common shares Preferred shareholders are allowed to receive additional dividends beyond the stated amount, 3. If the specified dividend is not declared in any given year, it need never be paid 4. Preferred shareholders dividends are limited to the stated amount Next > 6 of 23 < Prev Question no....pages 7 Question no...pages ....pdf 5.arrow_forward
- GL1501 (Algo) - Based on Problem 15-4A LO P4 STO Corporation had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. July 7 April 16 Purchased 5,500 shares of Arnold Company stock at $27 per share. Purchased 4,000 shares of Haven Company stock at $52 per share. Purchased 1,800 shares of Kohler Company stock at $19 per share. Received an $1.30 per share cash dividend on the Arnold Company stock. Sold 3,300 shares of Arnold Company stock at $30 per share. July 20 August 15 August 28 October 1 December 15 Received a $1.60 per share cash dividend on the remaining Arnold Company shares. December 31 Received a $3.30 per share cash dividend on the Haven Company shares. Received a $3.90 per share cash dividend on the Haven Company shares. Requirement General Journal General Ledger Trial Balance X Answer is not complete. Fair Value Adjustment April 16) Purchased 5,500 shares of Arnold…arrow_forwardpo tained es ed 0 e Chapter 33 -Statement of Changes in Equity | 33-15 MCP 33-9 - Changes in equity The Dec. 31, 2021 balance sheet of Jasmine Corp. showed shareholders' equity of P448,700. Transactions during 2021 which affected the shareholders' equity were: (1) an adjustment to Retained Earnings for an overstatement of depreciation in 2020 P10,000; (2) gain on the sale of treasury shares, P9,000; (3) declared dividends of P60,000 of which P40,000 were paid during the year; and (4) net income after tax of P75,500. The share capital balance of P300,000 remain unchanged during the year. The retained earnings balance on Jan. 1, 2020 was a. P134,200 b. P132,300 c. P123,200 d. P114,200 MCP 33-10- Changes in equity An entity was incorporated on June 1, 2021 with an authorizedarrow_forwardView Policies Current Attempt in Progress Concord, Inc. paid $127000 to buy back 11000 shares of its $1 par value common stock. This stock was sold later at a selling price of $9 per share. The entry to record the sale includes a O credit to Paid-in Capital from Treasury Stock for $11000. O debit to Retained Earnings for $28000. O debit to Paid-in Capital from Treasury Stock for $127000. O credit to Retained Earnings for $11000. Save for Later Attempts: 0 of 1 used Submit Answerarrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337690881/9781337690881_smallCoverImage.gif)