Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
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Textbook Question
Chapter 7, Problem 7.2E
Exercise 7 (LO 4) Equity adjustments with
Brian Construction Company did not pay preferred dividends in 2014.
Assume Ace Construction has me following net income (loss) for 2015 and 2016 and does not pay any dividends:
Roller maintains its investment account under the cost method. Prepare the cost-to-equity conversion entries necessary on Roller Company's books to adjust its investment account to the simple equity balance as of January 1, 2017.
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BE17.5 (LO 2) Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock for $13,200 (Fairbanks does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $34.50 per share. Prepare Fairbanks' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)
BE17.6 (LO 2) Use the information from BE17.5 but assume the stock is nonmarketable. Prepare Fairbanks' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment, if any.
GL1501 - Based on Problem 15-4A LO P4
Twist Corp. had no short-term investments prior to year 2017. It had the following transactions involving short-term investments in available-for-sale securities during 2017.
Apr.
16
Purchased 5,000 shares of Lafayette Co. stock at $26 per share.
July
7
Purchased 3,500 shares of CVF Co. stock at $51 per share.
20
Purchased 1,600 shares of Green Co. stock at $18 per share.
Aug.
15
Received an $1.20 per share cash dividend on the Lafayette Co. stock.
28
Sold 3,000 shares of Lafayette Co. stock at $29 per share.
Oct.
1
Received a $3.30 per share cash dividend on the CVF Co. shares.
Dec.
15
Received a $1.40 per share cash dividend on the remaining Lafayette Co. shares.
31
Received a $2.70 per share cash dividend on the CVF Co. shares.
4. 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. P1,500
Chapter 7 Solutions
Advanced Accounting
Ch. 7 - Prob. 1UTICh. 7 - Prob. 2UTICh. 7 - Prob. 3UTICh. 7 - Prob. 4UTICh. 7 - Exercise 1 (LO 1) Purchase of shares directly from...Ch. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Prob. 5ECh. 7 - Prob. 6E
Ch. 7 - Prob. 7.1ECh. 7 - Exercise 7 (LO 4) Equity adjustments with...Ch. 7 - Prob. 8.1ECh. 7 - Prob. 8.2ECh. 7 - Prob. 8.3ECh. 7 - Prob. 7.1.1PCh. 7 - Prob. 7.1.2PCh. 7 - Prob. 7.2.1PCh. 7 - Prob. 7.2.2PCh. 7 - Prob. 7.2.3PCh. 7 - Prob. 7.2.4PCh. 7 - Problem 7-4 (LO 3) Sale of partial, then balance...Ch. 7 - Prob. 7.5PCh. 7 - Prob. 7.7.1PCh. 7 - Prob. 7.8.2PCh. 7 - Prob. 7A.1APCh. 7 - Prob. 7A.2.1APCh. 7 - Prob. 7A.2.2AP
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