ABC Financial Services Inc. invested $15,000 to acquire 3,750 shares of EDFInvestments Inc. on March 15, 2012. This investment represents less thun 20% of the investee's voting stock. On May 7, 2016, ABC Financial Services Inc. sells 1,950 shares for $11,050. Which of the following will be the correct journal entry for this transaction?Introduction to Fir29:01 Finlnswer SheetA. Cash$ 11,050 Loss on Disposal$ 3,950Investments$ 15,000B. Cash$ 11,050Investment$ 7,800Gain on Disposal$ 3,250C. Cash$ 11,050Investments$ 11,050D. Gain on Disposal$ 11,050lInvestments$ 11,050
Q: Lancelot Manufacturing is a small textile manufacturer using machine-hours as the single…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…
Q: what is the ending balance in the equity investment account for both years? this solution only…
A: Beginning Equity Investment: $2,400,000Orange's share of Blue's net income: 20% * $600,000 =…
Q: sume that Partners A and B each report a Capital Account of $500,000. Partner C wants to join the…
A: Partnership -A partnership is a type of business structure that allows two or more people to…
Q: Beresford Inc. purchased several investments in debt securities during 2020, year of operations. The…
A: Bonds -Companies issue bonds, which are traded assets that are securitized from their corporate…
Q: A pharmaceutical company acquires a company with patents on two prescription medicines Drug A is a…
A: Fair value is the price at which, both seller and buyer agree to exchange the asset. So, fair value…
Q: The supplies account had a beginning balance of $1,833. Supplies purchased during the period totaled…
A: Adjusting Entries: The term "adjusting entries" refers to journal entries made at the conclusion of…
Q: The income statement and a schedule reconciling cash flows from operating activities to net income…
A: Cash flow from operating activities indicates the cash inflow or outflow transactions related to the…
Q: Admission of new partner-Bonus Method Assume that Partners A and B each report a Capital Account of…
A: A partnership is a type of business structure that allows two or more people to jointly own a firm…
Q: Please do not give solution in image format thanku
A: The objective of the question is to calculate the cost of goods sold (COGS) using the FIFO (First…
Q: For tax year 2023Cindy has work-related dependent care expenses of $3,200 for the care of one…
A: When calculating the Child and Dependent Care Credit, the allowable expenses are subject to certain…
Q: On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank.…
A: NOTES PAYABLE Notes payable, usually referred to as promissory notes, are a type of debt that a…
Q: Sheila and Joe Wells are married with no dependent children. During 2020, they have gross income of…
A: This question deals with the calculation of tax refund for year 2020As per US tax code,first we need…
Q: Problem 1-42 (LO 1-4) Havel and Petra are married and will file a joint tax return. Havel has W-2…
A: The taxable income is the income that is used to compute the tax liability of an individual. An…
Q: Keeping in view the IAS-17, classify the following transactions with reasons into operating lease or…
A: The objective of the question is to classify the given transactions into operating lease or finance…
Q: a. Compute a weighted average forecast using a weight of 0.4 for the most recent period, 0.3 for the…
A: To compute a weighted average forecast, you can use the following formula:Weighted Average Forecast…
Q: A taxpayer has $65,000 in wage income (of which $15,000 is from California Qualified Stock Options),…
A: The complete income received by a person or corporation before any charges or deductions are made is…
Q: Lina Center for Performing Arts is a not-for-profit organization. The center began operations on…
A: A journal entry serves as a fundamental accounting record to document financial transactions within…
Q: c. Indicate whether Havel will need to borrow money during October by preparing October's Cash…
A: A cash budget is a company's estimation of cash inflows and outflows over a specific period of time,…
Q: On the 1/01/x3, J Group acquired 2 025 000 of the 4 500 000 ordinary R1 shares in Entity PA for R5…
A: The objective of the question is to calculate the group's investment in associate figure in its…
Q: Exercise 4-10 (Algo) Calculate the balance of cash using a bank reconciliation (LO4-5) On August 31,…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Q: On August 1, Batson Company issued a 60-day note with a face amount of $75,600 to Jergens Company…
A: Inventory includes all the items, merchandise, and raw materials that are used by the business…
Q: Avery, an unmarried taxpayer, had the following income items: $ 43,600 3,500 Salary Net income from…
A: The objective of the question is to calculate Avery's child tax credit and dependent care credit for…
Q: Grand Corporation reported pretax book income of $609,000. Tax depreciation exceeded book…
A: Deferred Income Tax -A liability that appears on a balance sheet as a result of a discrepancy in…
Q: The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid…
A: The percentage method has no wage or allowance limit. therefore firm can use it if the employee's…
Q: Beasley Incorporated reports the following amounts in its December 31, 2024, income statement. Sales…
A: The income statement is one of the important financial statements of the business. It tells about…
Q: Determine the amount of cash received from customers for each of the three independent situations…
A: The account receivables represents the amount due to be received from the customers. The account…
Q: Osborne Supply Company has credit sales of $2M per year. Collections average $8000 per day. Assume…
A: In the given problem, the internal processing time is reduced by 1 day, as a result of which the…
Q: Which of the following is not a common procedure for assessing operating effectiveness of preventive…
A: Preventive controls is a measure of safeguards implemented by an organisation to proactively…
Q: haresh
A: The objective of the question is to calculate the total and per share amounts that would be paid to…
Q: Rondo Ltd. (RL) is a wholesaler operation, with an active warehouse. Staff at RL have prepared a…
A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…
Q: al Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold…
A: Gross profit is the difference between net sales revenue and the cost of goods sold. Net sales…
Q: Marco Company shows the following costs for three jobs worked on in April. Job 306 Job 307 Job…
A: The objective of the question is to prepare journal entries for the month of April for Marco Company…
Q: On the consolidated balance sheet at December 31, 2020, what is the balance for consolidated…
A: Retained earnings represent the cumulative net income of a company that is retained and reinvested…
Q: ok -nces The following are the foreign currency positions of an H, expressed in the foreign…
A: The objective of the question is to calculate the net exposure of the Financial Institution (FI) in…
Q: On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income…
A: Partnership refers to an agreement between two or more than two parties to carry a business and…
Q: Roy Electric (RE) owed Estimated Warranty Payable of $1,200 at the end of 2015. During 2016, RE made…
A: WARRANTY EXPENSESWarranty Expenses are computed by deducting Ending Warranty Payable from the sum of…
Q: 6
A: The objective of the question is to record the transactions for the year 2021 for Peru Industries.…
Q: Schedule of cash collections of accounts receivable OfficeMart Inc. has "cash and carry" customers…
A: Cash collection budget :— This budget is prepared to estimate the collection of sales from customers…
Q: Two years ago, Print Co. acquired 20% of Stamp Co. common stock for $600,000. Today, Print acquires…
A: The objective of the question is to calculate the total investment made by Print Co. in acquiring…
Q: This alphabetized adjusted trial balance is for GalaVu Entertainment as of its December 31, 2023,…
A: Income statement is a financial statement that shows the profitability, total revenue and total…
Q: A business issued a 60-day, 4% note for $21,600 to a creditor on account. The company uses a 360-day…
A: "Note Payable" is a financial instrument commonly used in the fields of accounting and finance. It…
Q: 21) The subject farm property has 80 acres of irrigated cropland, 120 acres of pasture, and 40 acres…
A: First, we need to find the price per acre of irrigated cropland from Comparable A. We know that…
Q: Ronald purchased a computer on March 4, 2023 for $3,200 for use in his accounting practice. How much…
A: MACRS provides a systematic way for businesses to recover the cost of their assets over time,…
Q: [The following information applies to the questions displayed below.] Cane Company manufactures two…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Gerogi Company had the following balances for income from continuing operations and pretax gains and…
A: A fiscal reporting metric known as "comprehensive income" takes into account all equity changes…
Q: At year-end December 31, Chan Company estimates its bad debts as 0.70% of its annual credit sales of…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: Jake has approached you for a loan and based on your assessment, his cash-flow will accommodate a…
A: The determination of a loan which will be given to any borrower depends upon the borrowing capacity…
Q: Loan Type Annual Operating Real Estate Protective Advance for real estate taxes plus interest…
A: To determine the payment date of credit, consider the date the check was received, which is November…
Q: Write a report about The US and the IFRS Taking into consideration the following Title page content…
A: The objective of this question is to create a report on the relationship between the United States…
Q: Sienna Inc. is a large producer of men's and women's clothing. The company uses standard costs for…
A: Variance analysis is a systematic approach used by organizations to compare actual financial results…
Step by step
Solved in 5 steps with 2 images
- On April 1, 2024, Sandhill Company purchased 46,400 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (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 journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Save for Later Account Titles Debit Credit Attempts: 0 of 1 used Submit AnswerOn April 1, 2024, Sheridan Company purchased 34,400 common shares in Ecotown Ltd. for $18 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $20 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (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 journal entries in the order presented in the problem. List all debit entries before credit entries) Date 10 Account Titles Debit CreditOn April 1, 2024, Sunland Company purchased 44,800 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (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 journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles く Debit Credit
- Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction costs of the purchase were $400. At 31 December 20x0, the shares are trading at $5.0 each. a. What is the carrying balance of this financial asset shown on statement of financial position as at 31 December 20X0? b. What is the gain to be recognised on these shares for the year ended 31 December 20X0? Where to record this gain in statement of profit or loss and other comprehensive? c. Assume that these shares were held for sales, what is the initial measurement of this financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or loss and other comprehensive income at the year ended 20X0?Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…On June 30, 2015, MetroMedia, Inc., purchased 10,000 shares of Mitek stock for $20 per share.The following information pertains to the fair value of Mitek stock:Per Share12/31/2015 $2412/31/2016 31Required:Assume that management considers the stock to be available-for-sale securities. Prepare the journal entries required on each date given.
- On August 1, 2015, McLellan Ltd. purchased 1,000 Data-wave common shares for $45,000 cash with the intention of trading the shares and using the fair value through profit or loss model. On December 31, 2015, McLellan s year end, the shares fair value was $49,000. Prepare the journal entry to record (a) The purchase of this investment on August 1, and (b) Any adjusting journal entry required at December 31? Please provide explanation to the recorded entries through narration.As of December 31, 2014, Kaman Corp. held two Equity Securities. Information regarding these securities is as follows: Secuirty Date Acquired Acquisition Cost Market Value (12/31/14) A $35,000 $88,000 B Based on the information given, create the journal entry that would be recorded on 12/31/14. For each line item of the journal entry write whether it is a Dr. or Cr., the account name, and amount. 1/16/14 2/22/14 $36,000 $79,000Current Attempt in Progress Following is a list of investments owned by Kingbird Ltd., as of the company's year-end, December 31, 2023: Investment HFX Corporation FDY Ltd. CTN Corporation Date Jan. 15, 2024 No. Shares Cost 1,300 $8.15 2,500 4,100 On January 15, 2024, Kingbird sold the shares in CTN Corporation for $7.14 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (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. List all debit entries before credit entries.) FV-OCI Investments 7.26 6.23 Cash Account Titles and Explanation Unrealized Gain or Loss - OCI Fair Value $7.14 7.14 6.90 (To record adjustment to current fair value.) Retained Earnings FV-OCI Investments (To record the sale of shares.) Accumulated Other…
- Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…Benevolent Company had the following transactions: 2020 Aug. 1Purchased 1,000 shares of Star Company for P60,000. Oct. 1Purchased 8,000 shares of Star Company for P560,000. 2021 July 1Purchased 6,000 shares of Star Company for P480,000. Oct. 1Sold 5,000 shares of Star Company for P500,000. Use FIFO. 2022 Feb. 1Received 50% share dividend.Nov. 1Received share rights to purchase one new share at P60 for every 5rights tendered. On this date, the right is quoted at P10. Dec. 1Sold all share rights at P15 per right. Required:a.Prepare journal entries to record the transactions using average and FIFO. The share rights are accounted forseparatelyOn April 10, 2019, Amelia Inc. purchased 450 shares of its own common stock in the market for $22 per share. On September 28, 2019, the company sold 270 of these shares in the open market at a price of $25 per share. Required: a. Use the horizontal model to show the effects on Amelia Inc's financial statements of the purchase of the treasury stock on April 10, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses b. Use the horizontal model to show the effects on Amelia Inc's financial statements of the sale of the treasury stock on September 28, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses +