Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021. March 1 Purchases 1,100 shares (10%) of Power Drive Corporation’s common stock for $43 per share. July 1 Receives a cash dividend of $1.30 per share. December 31 The fair value of Power Drive Corporation’s common stock is $52 per share. On February 1, 2022, Gator Shoes sells 275 shares of Power Drive Corporation’s common stock for $61 per share.' Required: 1. Record each of these transactions in 2021, including an adjustment on December 31 for the investment’s fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021. March 1 Purchases 1,100 shares (10%) of Power Drive Corporation’s common stock for $43 per share. July 1 Receives a cash dividend of $1.30 per share. December 31 The fair value of Power Drive Corporation’s common stock is $52 per share. On February 1, 2022, Gator Shoes sells 275 shares of Power Drive Corporation’s common stock for $61 per share.' Required: 1. Record each of these transactions in 2021, including an adjustment on December 31 for the investment’s fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

See similar textbooks

Similar questions

Gator Shoes, Incorporated, manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2024. March 1 July 1 December 31 The fair value of Power Drive Corporation's common stock is $72 per share. On February 1, 2025 (the following year), Gator Shoes sells 675 shares of Power Drive Corporation's common stock for $67 per share. Purchases 2,700 shares (10%) of Power Drive Corporation's common stock for $59 per share. Receives a cash dividend of $1.40 per share. Required: 1. Record each of these transactions in 2024, including an adjusting entry on December 31 for the investment's fair value, if appropriate. 2. Record the sale on February 1, 2025. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.
ator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions relate to investments in common stock during 2021. March 1 Purchases 2,100 shares (10%) of Power Drive Corporation’s common stock for $53 per share. July 1 Receives a cash dividend of $1.55 per share. December 31 The fair value of Power Drive Corporation’s common stock is $66 per share. On February 1, 2022, Gator Shoes sells 525 shares of Power Drive Corporation’s common stock for $61 per share.Required:1. Record each of these transactions in 2021, including an adjustment on December 31 for the investment’s fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 2. Record the sale on February 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
During 2021, Sam Harris purchased 50 shares of common stock issued by Atlanta Carpet Mills for $6800 including commission. Later In the same year, Sam sold the shares for $7200 after commission. Calculate the following. (Round all answers to two decimal places.) $1 1. Profit on this stock transaction: 2. Percentage return on investment: Parentheses S
An investor company purchased 17,000 of the 50,000 outstanding shares of the investee company's common stock for $338,000 on January 1, 2021. During 2021, the investee company declared dividends of $33,000 and reported earnings for the year of $158,000. If the investor company uses the equity method of accounting for its investment in the investee company, it should report Dividend Revenue from the investee for 2021 in the amount of $_______. (If there is no Dividend Revenue, then enter 0. Do not round your answer for any part of the computation.)
During 2021, Scott Peterson purchased 275 shares of common stock issued by true state manufacturing for $13,800 including commission. Later in the same year, Scott sold the shares for 14,000 after commission. Calculate the following: 1. Profit on this stock transaction 2. Percentage return on investment %
On August 15, 2021, EasyMoney, Inc.s Board of Directors meets. and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration > Date of Record D Date of Payment $1.25 August 15, 2021 Septembe5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. > Cash D Dividends Payable > Retained Eamings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Eamings account is $625,000. ording Dividends uirement 1 August 15 Dividend declaration entry Date Account Hame Debir Credi B. Alter posting the abovs
An investor company purchased 180,000 shares of common stock of the investee company on January 2, 2021. The investee company had 500,000 shares of common stock outstanding during 2021, declared and paid cash dividends of $241,000 during 2021, and reported net income of $738,000 for 2021. If the investor company uses the equity method of accounting for its investment in the investee company, the investor company should report revenue from investment (or Investment Income) for 2021 in the amount of $___________________. (Do not round your answer for any part of the computation.)
Bramble Limited, a public company that follows IFRS and has a calendar year end, made the following purchases of investments in 2023. Bramble intends to sell these investments to earn short-term profits from appreciation in their prices and accounts for the investments using the FV-NI model. This is the first year in which Bramble invested in equity securities: 1. 2. On March 20, purchased 4,500 shares of Wu Inc. common shares at $27 per share plus commission of $480. On August 15, purchased 3,200 shares of Xi Inc. common shares at $23 per share plus commission of $420. On June 30, Bramble sold 2,700 shares of Wu Inc. at $29 less commission of $600. The December 31, 2023 market value of the Wu shares was $30 and of the Xi shares was $22. (f) (c) Your answer is correct. Prepare the adjusting entry needed at December 31, 2023. (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…
Jackson Inc. purchased 30,000 shares of common stock of the Pixel Corporation for $10 per share on January 2, 2020. During 2020, Pixel had 100,000 shares of common stock outstanding, reported net income of $200,000, and paid cash dividends of $100,000. The fair value of Pixel stock on December 31, 2020 is $12 per share. On December 31, 2020, what will Jackson report on its Balance Sheet for its investment in Pixel? How much revenue should Jackson report for 2020 on its investment in Pixel? Round your answers to the nearest whole number. Dot not use dollar signs($) or commas(,). Blank # 1 Blank # 2
On August 15, 2021, EasyMoney, Inc.'s Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders. The following are the facts related to this dividend: D Dividend per Share D Date of Declaration D Date of Record D Date of Payment $1.25 August 15, 2021 September 5, 2021 September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.'s General Ledger. These are the only accounts you need for this problem. D Cash D Dividends Payable > Retained Earnings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Earnings account is $625,000.
In January 2022, the management of Handley Corporation, a publicly-traded company, decides that it has sufficient cash to purchase some debt and equity securities to be held as trading investments. During the year, the following transactions occurred. Feb. 1 Purchased 1,100 shares of NJF common shares for $48,400. Mar. 1 Purchased 500 shares of SEK common shares for $20,000. Apr. 1 Purchased 73 $1,000, 8% CRT bonds for $74,200. Interest is receivable semi-annually on April 1 and October 1. July 1 Received a cash dividend of $0.60 per share on the NJF common shares. Aug. 1 Sold 180 shares of NJF common shares at $39.00 per share. Sept. 1 Received $2 per share cash dividend on the SEK common shares. Oct. 1 Received the semi-annual interest on the CRT bonds. Oct. 1 Sold the CRT bonds for $79,240. At December 31, Handley’s fiscal year end, the fair values of the NJF and SEK common shares were $38 and $29 per share, respectively. Record the above…
During 2021, Tom Sanchez purchased 200 shares of common stock issued by Tri State Manufacturing for $3400 including commission. Later in the same year, Tom sold the shares for $3800 after commission. Calculate the following. (Round all answers to two decimal places.) 1. Profit on this stock transaction: Parentheses 2. Percentage return on investment: % %4

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

GET THE APP

About FAQ Academic Integrity Sitemap Document Sitemap

Contact Bartleby Contact Research (Essays)High School Textbooks Literature Guides Concept Explainers by Subject Essay Help Mobile App

GET THE APP

Privacy

Your CA Privacy Rights

Your NV Privacy Rights

About Ads

Manage My Data

bartleby, a Learneo, Inc. business

March	1	Purchases 1,100 shares (10%) of Power Drive Corporation’s common stock for $43 per share.
July	1	Receives a cash dividend of $1.30 per share.
December	31	The fair value of Power Drive Corporation’s common stock is $52 per share.