Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Case 1.b
In 2022, the following are the equity transactions and the corresponding journal entries made.
1. On April 12, 2022, it was noted that Shipyard, Inc. purchased 4,000 its own common
stock at $25 per share
Apr 15
Treasury Shares
Retained Earnings
2. On Jun 15, the company sold 2,500 shares for $30 per share.
Apr 12 Cash
Treasury Shares
The table shows the equity balances as of December 31, 2022
2022
beginning Balance
Common Stock
acquisition
Sold Treasury Stock
Ending Balance
Common
Stock
1,130,000
1,130,000
Paid-in Common
stock
dividend
distributable
120,000
capital in
excess of
par
300,000
300,000
Treasury
Shares
0
-75,000
50,000
120,000 -25,000
100,000
75,000
Retained
Earnings
850,000
75,000
925,000
100,000
75,000
Total
2,400,000
0
50,000
2,450,000
Requirement.
(b) Evaluate whether the journal entries dated April 15, 2022 and June 12, 2022 are recorded
in accordance with the recognition and measurement principles of treasury shares.
(bl) If the journal entries are wrong, what…
Problem 1 about Trading Securities
Bank National investment manager invests some of its financial resources in securities trading. During the last quarter of 2018, the following transactions took place in connection with trading securities.
Nov. 5. Buy 200 shares of M Company's ordinary shares for $ 86 per share.Nov 19. Buy 300 shares of Company P preferred stock at $ 63 per share.Dec 29 Sold 100 shares of Company M's ordinary shares for $ 89 per share.Dec. 15. Buy 400 shares of T Company common stock for $ 37 per shareDec 17 Company P shares are sold at preference shares at $ 62 per share
As of December 31, 2010, the stock market value was as follows:M, $ 87 per share;P, $ 61 per share; andT, $ 37.25 per share.The bank did not have any trading effects at the beginning of the last quarter of 2010.
Requested:1. Prepare a journal entry to record the information.2. Show what the bank reported in the 2010 fourth quarter profit and loss statement for these trading securities.3. Show how the…
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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Chapter C Solutions
Connect Access Card for Financial Accounting: Information and Decisions
Ch. C - Under what two conditions should investments be...Ch. C - Prob. 2DQCh. C - Prob. 3DQCh. C - Identify the three classes of debt investments and...Ch. C - Prob. 5DQCh. C - Prob. 6DQCh. C - Prob. 7DQCh. C - Prob. 8DQCh. C - Prob. 9DQCh. C - Prob. 10DQ
Ch. C - Prob. 11DQCh. C - Prob. 12DQCh. C - Prob. 13DQCh. C - Prob. 14DQCh. C - Prob. 15DQCh. C - Prob. 16DQCh. C - Prob. 17DQCh. C - Which of the following statements a through g are...Ch. C - Prob. 2QSCh. C - Prob. 3QSCh. C - Prob. 4QSCh. C - Prob. 5QSCh. C - Prob. 6QSCh. C - Prob. 7QSCh. C - Prob. 8QSCh. C - Prob. 9QSCh. C - Prob. 10QSCh. C - Prob. 11QSCh. C - Prob. 12QSCh. C - Prob. 13QSCh. C - Prob. 14QSCh. C - Prob. 15QSCh. C - Prob. 16QSCh. C - Prob. 17QSCh. C - Prob. 1ECh. C - Prob. 2ECh. C - Prob. 3ECh. C - Prob. 4ECh. C - Prob. 5ECh. C - Prob. 6ECh. C - Prob. 7ECh. C - Prob. 8ECh. C - Prob. 9ECh. C - Prob. 10ECh. C - Prob. 12ECh. C - Prob. 13ECh. C - Prob. 14ECh. C - Prob. 15ECh. C - Prob. 16ECh. C - Prob. 2PSACh. C - Prob. 6PSACh. C - Prob. 2PSBCh. C - Prob. 3PSBCh. C - Prob. 5PSBCh. C - Prob. 6PSBCh. C - Prob. CSPCh. C - Prob. 4BTNCh. C - Prob. 9BTN
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- Journalizing equity investment transactions; fair value method Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24. Purchased 1,000 shares of Tett Co.'s common stock for $85 per share. May 16. Purchased 2,500 shares of Isaacson Co.'s common stock for $35. July 14. Sold 400 shares of Tett Co. stock for $102 per share. Aug. 12. Sold 750 shares of Isaacson Co. stock for $32 per share. Oct. 31. Received dividends of $0.40 per share on Tett Co. stock. Dec. 31. At the end of the accounting period, the fair value of the remaining 600 shares of Tett Co.'s stock was $110 per share. The fair value of the remaining 1,750 shares of Isaacson Co.'s stock was $30 per share. Journalize the entries for these transactions. If an amount box does not require an entry, leave it blank. Feb. 24 May 16 July 14 Aug. 12 Oct. 31 Dec. 31arrow_forwardView Policies Current Attempt in Progress On January 1, Blossom Enterprises had 90,000 no-par ordinary shares issued and outstanding. The shares have a stated value of €5 per share. During the year, the following occurred. Apr. 1 June 15 July 10 Dec. 1 15 Issued 20,000 additional ordinary shares for €15 per share. Declared a cash dividend of €1 per share to shareholders of record on June 30. Paid the €1 cash dividend. Issued 2,000 additional ordinary shares for €18 per share. Declared a cash dividend on outstanding shares of €1.20 per share to shareholders of record on December 31. Prepare the entries to record these transactions. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.)arrow_forward↑ 3 minutes ago ☆ Live Large Inc. had the following transactions involving non-strategic investments during 2023. 2023 Apr. 1 Paid $100,ese to buy a 90-day term deposit, $100,000 principal amount, 5.0%, dated April 1. There was a $50 transaction fee included in the above-noted payment amount. 12 Purchased 3,000 common shares of Blue Balloon Ltd. at $22.25. There was a $50 transaction fee included in the above-noted payment amount. June 9 Purchased 1,800 common shares of Purple Car Corp. at $49.50. There was a $50 transaction fee included in the above-noted payment amount. 20 Purchased 700 common shares of Yellow Tech Ltd. at $15.75. There was a $50 transaction fee included in the above-noted payment amount. July 1 Purchased for $67,412 a 7.0%, $65,000 Space Explore Inc. bond that matures in eight years when the market interest rate was 6.4%. There was a $50 transaction fee included in the above-noted payment amount. Interest is paid semiannually beginning December 31, 2023. Live Large…arrow_forward
- D1. Account In January 2022, the management of Ivanhoe Company concludes that it has sufficient cash to permit some short-term investments in debt and equity securities. During the year, the following transactions occurred. Feb. 1 Mar. 1 Apr. 1 July 1 Aug. 1 Sept. 1 Oct. 1 Oct. 1 Purchased 800 shares of Muninger common stock for $40,000. Purchased 1,000 shares of Tatman common stock for $25,000. Purchased 70 of $1,100, 8% Yoakem bonds for $77,000. Interest is payable semiannually on April 1 and October 1. Received a cash dividend of $0.60 per share on the Muninger common stock. Sold 266 shares of Muninger common stock at $60 per share. Received a $2 per share cash dividend on the Tatman common stock. Received the semiannual interest on the Yoakem bonds. Sold the Yoakem bonds for $75,300. At December 31, the fair value of the Muninger and Tatman common stocks were $51 and $24 per share respectively. These stock investments by Ivanhoe Company provide less than a 20% ownership interest.…arrow_forwardCurrent Attempt in Progress The following data were taken from the balance sheet accounts of Oriole Corporation on December 31, 2024. Current assets Debt investments (trading) Common stock (par value $10) Paid-in capital in excess of par Retained earnings a. b. $590,000 630,000 C. 501,000 Prepare the required journal entries for the following unrelated items. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) 162,000 870,000 A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $45. The par value of the common stock is reduced to $2 with a 5-for-1 stock split. A dividend is declared January 5, 2025, and paid January 25, 2025, in bonds held as an investment. The bonds have a book value of…arrow_forwardOn January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Accounts Receivable Supplies Equipment Accumulated Depreciation Accounts Payable Common Stock, $ 1 par value Paid-in Capital-Excess of Par Retained Earnings Totals Debit During January 2024, the following transactions occur: Requirement $ 43,900 46,900 8,700 76,000 General Journal January 2 Issue an additional 2,108 shares of $1 par value common stock for $42,000. January 9 Provide services to customers on account, $17,200. January 18 Purchase additional supplies on account, $6,100. January 12 Repurchase 1,488 shares of treasury stock for $18 per share. January 15 Pay cash on accounts payable, $17,780. January 21 Provide services to customers for cash, $50,300. January 22 Receive cash on accounts receivable, $17,808. January 29 Declare a cash dividend of $8.40 per share to all shares outstanding on January 29. The dividend is payable on February 15. (Hint: Freedom…arrow_forward
- $15-5 Accounting for trading investments On February 1, 2014, Holl Co. decides to invest excess cash of $20,000 by pur- chasing 1,000 shares of Cooke, Inc. stock at $20 per share. At year-end, December 31, 2014, Cooke's market price was $22 per share. The investment is categorized as a trading investment.arrow_forwardPrepare the journal entry to record Zende Company's issuance of 65,000 shares of $4 par value common stock assuming the shares sell for: a. $4 cash per share. b. $5 cash per share. View transaction list Journal entry worksheet Record the issuance of 65,000 shares of $4 par value common stock assuming the shares sell for $4 cash per share. 2 Note: Enter debits before credits. Transaction a. Record entry General Journal Clear entry Debit Credit View general journalarrow_forward
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