ACNT 1371 PRINT UPGRADE
10th Edition
ISBN: 9781260906554
Author: SPICELAND
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 18, Problem 18.6E
To determine
Redeemable shares: Shares with redemption privilege have to be returned back to the corporation, under specified condition is known as redeemable shares. It may be redeemable either at the option of the shareholder or at the option of the corporation. Mandatorily redeemable shares have to be classified as liabilities.
To identify: The type of share which would be reported as liabilities in the
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0.94 l
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E its
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A
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D
1
2 E17.16 (LO 2, 3) (Fair Value and Equity Method Compared) Jaycie Phelps Inc. acquired 20% of
3 the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price
4 was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on
5 June 30 and on December 31, 2021. Kulikowski reported net income of $730,000 for 2021. The fair value
6 of Kulikowski's stock was $27 per share at December 31, 2021.
8 Instructions
9 a. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps cannot
10 exercise significant influence over Kulikowski.
11 b. Prepare the journal entries for Jaycie Phelps Inc. for 2020 and 2021, assuming that Phelps can exer-
12 cise significant influence over Kulikowski.
13 C. At what amount is the investment in securities reported on the balance sheet under each of these methods
14 at December 31, 2021? What is the total net income reported in 2021 under each of…
Chapter 18 Solutions
ACNT 1371 PRINT UPGRADE
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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