GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter A, Problem 9P
To determine
Explain the effect of equity-method investment on the operating activities section investing activities section of
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An analysis of Karman Corporation's Investment in Marketable Securities account during Year 2 disclosed the following:
Debit entries
Credit entries
Karman's Year 2 income statement included a $40,000 gain on sale of marketable securities and $30,000 dividend income from marketable securities. All
payments and proceeds relating to marketable securities transactions were in cash.
$ 160,000
240,000
The cash proceeds received by Karman Corporation in Year 2 for the sale of marketable securities was:
Select one:
a. $240,000.
b. $280,000.
c. $230,000.
d. $160,000.
$
suuctions Chart of Accounts Journal
Instructions
Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The
following investment transactions were completed during the year:
Feb.
May
July
Aug.
Oct.
24 Acquired 1,200 shares of Tett Co. stock for $82 per share plus a $140
brokerage commission.
Acquired 2,600 shares of Issacson Co. stock for $35 per share plus a
$105 commission.
16
14
12
31
400 shares of Tett Co. stock for $100 per share less a $80
brokerage commission.
Sold 710 shares of Issacson Co. stock for $33.00 per share less an
$85 brokerage commission.
Received dividends of $0.40 per share on Tett Co. stock.
Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of
account titles. When required, round your answers to the nearest dollar.
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Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following:
a. During the year, Gympa purchased trading securities
b. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost
c. The balance of Retained Earnings was $792,000 on January 1
d. Gympa paid $67,000 in cash dividends during the year.
Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
Chapter A Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. A - Prob. 1QCh. A - Explain the difference in accounting methods used...Ch. A - Explain how bonds held to maturity are reported on...Ch. A - Explain the application of the cost principle to...Ch. A - Under the fair value method, when and how does the...Ch. A - Under the equity method, why does the investor...Ch. A - Prob. 7QCh. A - Prob. 8QCh. A - Prob. 9QCh. A - Company X owns 40 percent of Company Y and...
Ch. A - Prob. 2MCQCh. A - Dividends received from stock that is reported as...Ch. A - Prob. 4MCQCh. A - Prob. 5MCQCh. A - When using the equity method of accounting, when...Ch. A - Prob. 7MCQCh. A - Prob. 8MCQCh. A - Which of the following is true regarding the...Ch. A - Prob. 10MCQCh. A - Matching Measurement and Reporting Methods Match...Ch. A - Prob. 2MECh. A - Prob. 3MECh. A - Prob. 4MECh. A - Prob. 5MECh. A - Prob. 6MECh. A - Prob. 7MECh. A - Prob. 8MECh. A - Prob. 9MECh. A - Prob. 10MECh. A - Prob. 11MECh. A - Prob. 1ECh. A - Prob. 2ECh. A - Recording Transactions in the Available-for-Sale...Ch. A - Prob. 4ECh. A - Prob. 5ECh. A - Reporting Gains and Losses in the Trading...Ch. A - Prob. 7ECh. A - Prob. 8ECh. A - Prob. 9ECh. A - Prob. 10ECh. A - Prob. 11ECh. A - Prob. 1PCh. A - Prob. 2PCh. A - Prob. 3PCh. A - Prob. 4PCh. A - Prob. 5PCh. A - Comparing Methods to Account for Various Levels of...Ch. A - Prob. 7PCh. A - Recording Investments for Significant Influence LO...Ch. A - Prob. 9PCh. A - Prob. 10PCh. A - Prob. 11PCh. A - Prob. 1APCh. A - Prob. 2APCh. A - Reporting Passive Investments During January 2017,...Ch. A - Prob. 4APCh. A - Prob. 5APCh. A - Prob. 6APCh. A - Prob. 1CONCh. A - Finding Financial Information Refer to the...Ch. A - Prob. 2CPCh. A - Prob. 3CPCh. A - Prob. 4CPCh. A - Prob. 5CPCh. A - Prob. 6CP
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