On January 7, 2020, Webb Industries purchased 1,000 shares of Class A common stock in Bloomberg Corporation for $41,000. Webb does not have significant influence or control over Bloomberg. Although Class A shares are not actively traded, Class B shares are traded and are nearly identical aside from being publicly traded. At the end of 2020, Class B shares are trading for $46 per share. Webb makes the appropriate election to measure the stment based on observable price changes for similar securities. On December 12, 2021, Webb Industries sells the Bloomberg stock for 560,000. As of the end of 2021, Webb has no investments in equity securities.
Q: Genevieve bought a condo in Colorado for her personal use in 2018. She paid $250,000 at the time of…
A: Depreciation is reduction in the value of asset due to its use, wear or tear.To determine the basis…
Q: WCC Corporation has a $195,000 net operating loss carryover to 2023 from a previous year. Assume…
A: A company has a net operating loss (NOL) when its allowed deductions during a tax period exceed its…
Q: Revive Me Sports Drink produced 17,400 cases of powdered drink mix and sold 11,800 cases in July.…
A: The income statement is prepared to record the revenue and expenses for the current period. The net…
Q: The Doll House, a very profitable company, plans to introduce a new type of doll to its product…
A: The income tax benefit is a ledger that shows when a company incurred a loss during the period.…
Q: Tasty Resturant sells 4,500 plates of food each week. Among the costs are waitress wages, $25,000;…
A: According to the question given, we need to compute the prime cost, and, conversion cost.Prime…
Q: Identify the users as being either external users or internal users Customers Internal Revenue…
A: The users of financial statements are of the following categories.External usersInternal users
Q: Forten Company's current year income statement, comparative balance sheets, and additional…
A: Business activities are defined as those events that result from the workings of an entity in order…
Q: Rawlings Company prepared the following budget information for the coming year: Product A Product B…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: Oriole Corporation was organized on January 1, 2021. During its first year, the corporation issued…
A: The journal entries are prepared to record the transactions on regular basis. The dividend is…
Q: 2. Record in the T-accounts the effects of each transaction for Traveling Gourmet, Incorporated, in…
A: Cash A/cPARTICULARSAMOUNTPARTICULARSAMOUNTBeg. Balance$0(2)$102,000(1)(…
Q: Net income (a) Compute net cash flow from operating activities using the direct method. (b) Prepare…
A: Cash Flow Statement is a Statement which provides the information about the cash inflow as well as…
Q: Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a…
A: Inventory is a form of current asset that a business keeps on hand to run the business and is often…
Q: With the following transactions, determine the Cost of Good Sold for a Manufacturing plant. 1. A…
A: Cost of goods sold is the cost of total goods sold in any accounting period irrespective of volume…
Q: 14) Haver Corporation has provided the following data concerning last month's operations. Purchases…
A: The cost of goods available for sale includes the beginning inventory and cost of goods…
Q: The stockholders' equity accounts of G.K. Chesterton Company have the following balances on December…
A: Stock dividend is a dividend declared and issued in the form of shares. No cash was involved in this…
Q: Required information The Foundational 15 (Algo) [LO5-1, LO5-2, LO5-3, LO5-4, LO5-5, LO5-6, LO5-7]…
A: Operating leverage indicates the ability of the business to manage the fixed and variable costs to…
Q: The following are partially completed T-accounts for Marigold. The accountant needs help filling in…
A: Cost of goods manufactured :— It is the total cost of finished goods transferred from work in…
Q: Required information [The following information applies to the questions displayed below.] Mason…
A: Answer:- Qualified business income meaning:- The qualified business income deduction is basically a…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: The degree of operating leverage is calculated as net income divided by contribution margin. The…
Q: Requirements . Classify each item as a prevention cost, an appraisal cost, an internal failure cost,…
A: Costs paid by a business to proactively avoid flaws or faults in its goods or processes are known as…
Q: And the following line items in its Cash Flow and Balance Sheets Cash Flow Statement Cash Flow…
A: Free cash flow is determined by subtracting capital expenditure from cash flow from operations.
Q: Newton Company purchased land for an office site by paying $800,000 cash Newton began construction…
A: To determine the borrowing costs to be capitalized, we need to calculate the weighted average…
Q: Lillibridge & Friends, Incorporated provides you with the following data for its single product:…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Required: a. What amount of adoption credit, if any, can Niles and Marsha take in 2021? b. Using the…
A: Modified AGI is also referred to as modified adj (adjusted) gross income which is the adj gross…
Q: Calculate Julian Thomas' taxable income. Assume that the standard deduction for a single taxpayer is…
A: There are two question asked but due to guidelines only the first question is solved.Taxable income…
Q: Charlotte Taylor is 24 years old and single, lives in an apartment, and has no dependents. Last year…
A: In this problem, we are asked to compute the following:a. Estimate Charlotte Taylor's taxable…
Q: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending…
A: Variance is calculated by comparing the items of the two budgets prepared. Revenue and spending…
Q: Salary Expense Supplies Expense Depreciation Expense Demo Consulting For the Year Ended August Dame…
A: 1. Income Statement2. Balance SheetThe first statement shows the income earned and loss incurred by…
Q: The December 31, 2024, inventory of Tog Company, based on a physical count, was determined count was…
A: To ensure that ideal levels are maintained, inventory management includes tracking, valuing, and…
Q: Jordan is an eligible educator. He spends $300 on classroom supplies. He also reported a non-taxable…
A: Qualified Expenses:These can be defined as expenses that are incurred in relation to the tuition…
Q: Accounting information user 1. SEC regulator 2. Business press 3. Purchasing manager 4. Customer 5.…
A: External users are the users that does not relating to the company but does have an stake in the…
Q: Assume that the following events occurred in the following quarter. Paid $55 cash for additional…
A: Calculation of the cash Beginning Balance116Issued additional shares of common stock45Signed a…
Q: The following information is related to Whispering Company for 2025. Retained earnings balance,…
A: An income statement is prepared by the business entities so as to know how much amount of gross…
Q: Equipment acquired on January 6 at a cost of $417,390 has an estimated useful life of 17 years and…
A: Depreciation expense :— It is the allocation of depreciable cost of asset over the estimated useful…
Q: Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours,…
A: Overhead Rate is used to allocate the manufacturing overheads to the jobs or to the products. It can…
Q: Use the relationships in the balance sheet, income statement, and retained earnings statement to…
A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…
Q: Gilbert Canned Produce (GCP) packs and sells three varieties of canned produce: green beans; sweet…
A: The differential cost schedule is prepared to compare the different alternatives available with the…
Q: Once a post-filing issue has been resolved to the satisfaction of both the taxpayer and the Tax…
A: The duration for which an authorization form should remain open after a post-filing issue has been…
Q: For the month ended January 31, 2022, Laker Bakery reported $90,000 of sales revenue and $60,000 of…
A: Given,Sales Revenue = $90,000Total Expenses = $60,000Dividend Paid = $10,000Ending Cash Balance =…
Q: Statement of Stockholders' Equity You have been asked to assist with the preparation of a statement…
A: The Statement of Stockholders' Equity provides a comprehensive view of how a company's equity…
Q: Please select the application to the buyer of an automobile from the list of applications below…
A: A nonprofit organization, in simple terms, is like a group of people who've come together to make…
Q: 2024, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to…
A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…
Q: 3) Pencil Company had the following information for the year: Inventory, January 1 Inventory…
A: There are two methods of verification of materials.They are periodic inventory system and perpetual…
Q: A. Journalize the entry by Senger Company to record the customer refund to Burris Inc.* B. Assume…
A: To document events and transactions that occurred during the time, a journal entry must be made.…
Q: TRUE OR FALSE 4. Financial statements show the value of a reporting entity.
A: In this problem, we are asked to answer whether "Financial statements show the value of a reporting…
Q: The Krug Company collected $13,800 rent in advance on November 1, debiting Cash and crediting…
A: The advance receipts for rent are recorded as a liability because advance receipts have not been…
Q: Utilize the ending balances from your T-accounts to prepare an income statement, statement of…
A: Income Statement: The Income Statement provides a summary of a company's revenues, expenses, and net…
Q: 13) Cienfuegos Corporation has provided the following data concerning last month's operations.…
A: The cost of goods manufactured incldues the beginning WIP and costs incurred to finished the…
Q: The following account balances were taken from the adjusted trial balance for Urgent Messenger…
A: Income statement is prepared to calculate the net income for the year.Net income is the difference…
Q: The following information concerns production in the Baking Department for August. All direct…
A: FIFO METHOD :— Under this method, equivalent units are calculated by adding equivalent units in…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Ayayai Company’s net income for 2020 is $52,900. The only potentially dilutive securities outstanding were 1,040 options issued during 2019, each exercisable for one share at $6. None has been exercised, and 10,900 shares of common were outstanding during 2020. The average market price of Ayayai’s stock during 2020 was $20. (b) Assume the same facts as those assumed for part (a), except that the 1,040 options were issued on October 1, 2020 (rather than in 2019). The average market price during the last 3 months of 2020 was $20. Answer (b) Diluted Earnings Per Share = ?Presented below is information related to the purchases of common stock by Indigo Company during 2020. Cost(at purchase date) Fair Value(at December 31) Investment in Arroyo Company stock $ 90,000 $ 69,000 Investment in Lee Corporation stock 229,000 279,000 Investment in Woods Inc. stock 188,000 199,000 Total $ 507,000 $ 547,000 (Assume a zero balance for any Fair Value Adjustment account.) (a) What entry would Indigo make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (b) What entry would Indigo make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Indigo did not select the fair value option for these investments? (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…Sunland Technologies Inc. held a portfolio of shares and bonds that it accounted for using the fair value through other comprehensive income model at December 31, 2023. This was the first year that Sunland had purchased investments. In part due to Sunland's inexperience, by December 31, 2023, the market value of the portfolio had dropped $29,700 below its original cost. Sunland recorded the necessary adjustments at December 31, 2023, and was determined to hold the securities until the unrealized loss from 2023 could be recovered. By December 31, 2024, Sunland's goal of recovery had been realized and the original portfolio of shares and bonds had a fair market value $6,600 higher than the original purchase costs. Sunland's income tax rate is 30% for all years. Assume that any gains that will ultimately be realized on the sale of the shares and bonds are taxable as ordinary income when they are realized. Sunland applies IFRS. (a) Prepare the journal entries at December 31, 2023, to…
- On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00 per share. Pong had earnings of P3,000 per month during 2020 and paid dividends of P10,000 on March 1, 2020 and P12,500 on December 1, 2020. The fair value of Pong's shares was P6.50 per share on December 31, 2020. Which statement is correct? O Assuming that the investment is FVTPL, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P2,500 O Assuming that the investment is FVTOCI, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P7,500. O Assuming that the investment is an associate, the total effect on Ping's profit or loss for the year ended December 31, 2020 is P3,600. O After all closing entries for 2020 are completed, the effect of the increase in fair value on total shareholders' equity would be the same amount under the FVTOCI and FVTPL approaches.On 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 +On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The investment is measured at fair value through other comprehensive income. Brokerage fees amounted to P120,000. A P5 dividend per share of Jasper had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. No other transactions occurred in 2020 affecting the investment in Jasper's share. What is the initial measurement of the investment?
- Presented below is information related to the purchases of common stock by Cheyenne Company during 2020. Cost(at purchase date) Fair Value(at December 31) Investment in Arroyo Company stock $97,000 $76,000 Investment in Lee Corporation stock 266,000 311,000 Investment in Woods Inc. stock 176,000 185,000 Total $539,000 $572,000 (Assume a zero balance for any Fair Value Adjustment account.) (a) What entry would Cheyenne make at December 31, 2020, to record the investment in Arroyo Company stock if it chooses to report this security using the fair value option? (b) What entry would Cheyenne make at December 31, 2020, to record the investments in the Lee and Woods corporations, assuming that Cheyenne did not select the fair value option for these investments? (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 next (2) two questions: DEF, Inc. had the following portfolio of financial assets as of December 31, 2021 before any year-end fair value adjustments: Investment Ben Corp. stocks (20,000 shares) Chris, Inc. stocks (40,000 shares) Balance P605,000 1,100,000 The shares of Ben Corp. were acquired on February 20, 2021 with an intention of generating short- term profits from the share price's fluctuations. The company paid P30.25 per share, which includes P1.25 per share broker's fees and commissions. A P2 per share cash dividends were received on March 30. These dividends were declared by Ben Corp. on January 20, 2021 to stockholders as of record date March 1, 2021. The shares of Ben Corp. are trading at P30/share at year-end. The company paid P27.50 per share, including P0.50 per share broker's fees and commissions on the acquisition of Chris, Inc.'s stocks on March 1, 2021 for trading purposes. A P3 per share dividends were received from the said shares on May 3, 2021. The…Investco is a trading firm and has Dec 31 as its annual closing date. On Oct 17th of 2019, it had purchased 1000 shares at $12 each. The share value on Dec. 31, 2019 was $10. Due to Covid and lockdown, the share value on Dec 31, 2020 was further down to $8. Markets recovered a little in 2021 and the price as of Dec 31,2021 was $11. Markets further recovered and on June 20, 2022 shey sold all shares for $13. Please provide the necessary journal entries to record the purchase, changes in investment and sale of their investment, assuming this investment was categorized as FVTPL.
- Daring 2018, Mark Company acquired 11,000 ordinary shares of Raian Company's 200,000shares that are widely distributed. The shares are not intended to be traded in the near term and Mark Company does not have the ability to exercise significant influence over the operating and financial policies of Raian Company. The market value of these shares had been changing for the last three years as follows: December 31, 2018- P235,000; December 31, 2019-P241,000; December 31, 2020-P222,000These shares were acquired in 2018 for P231,000 plus broker's commission of P2,310.1. How much is the unrealized loss on the equity Investment recognized in profit or loss of 2020? a. P19,000 b. P11,310 c. P9,000 d. P0 2. At how much will the equity investments be reported in Mark Company's December 31,2020 statement of financial position? a. P233,310 b. P222,000 c. P241,000 d. P235,000On January 1, 2020, the Soondubu Stew Corporation purchased equity securities to be held for trading purposes for P2,000,000. The company also paid commissions, taxes and other transaction costs amounting to P50,000. The securities had fair values at December 31, 2020 and 2021, respectively: P1,750,000 and P2,100,000. No securities were sold during 2020. What amount of unrealized gain (loss) should be reported in the 2020 profit or loss section of the statement of comprehensive income?Required to answer. Single choice. -P100,000 -P350,000 -(P250,000) -(P200,000)On January 1, 2020, Alexis Company purchased marketable equity securities to be held as "trading" for P5,000,000. The entity also paid commission, taxes and other transaction costs amounting to P200,000. The securities had a market value of P5,500,000 on December 31, 2020 and the transaction costs that would be incurred on sale are estimated at P100,000. No securities were sold during 2020. What amount of unrealized gain or loss on these securities should reported in the 2020 income statement? a.P500,000 unrealized loss b.P400,000 unrealized gain C.P500,000 unrealized gain d.P400,000 unrealized loss