am.112. You have been asked by the VP of Finance to identify the appropriate accounting treatment for the following series of investmentsmade by Metaphor Investments Inc.: (Round per share calculations to 1 decimal place in percentage.)⚫ Purchased 50,000 of the 80,000 shares outstanding for The Natural Pharmacy Inc.• Purchased 20,000 of 50,000 shares outstanding for Metro Inc.⚫ Purchased 30,000 of 60,000 shares outstanding for Le Petite Boulangerie Inc.⚫ Purchased 40,000 of 75,000 shares outstanding for Wood Passion Ltd.CompanyPercentage of purchased sharesTreatmentThe Natural Pharmacy Inc.%Metro Inc.Le Petite Boulangerie Inc%%Wood Passion Ltd%

The objective of the question is to calculate the percentage of shares purchased by Metaphor…

Answered: You have been asked by the VP of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been asked to prepare a financial analysis of the REIT. National Property Trust Panel A. Operating Statement Summary Net revenue $ 101,000,000 Less: Operating expenses 40,400,000 Depreciation and amortization 23,000,000 General and administrative expenses 6,100,000 Management expense 3,100,000 Income from operations 28,400,000 Less: Interest expense* 6,400,000 Net income (loss) $ 22,000,000 *At 8% interest only. Panel B. Balance Sheet Summary Assets Cash $ 51,600,000 Rents receivable 2,600,000 Properties @ cost 710,000,000 Less: Accumulated depreciation…
You have been presented with the following set of financial statements for National Property Trust, a REIT that is about to make an initial stock offering to the public. This REIT specializes in the acquisition and management of warehouses. Your firm, Blue Street Advisors, is an investment management company that is considering the purchase of National Property Trust shares. You have been asked to prepare a financial analysis of the REIT. National Property Trust Panel A. Operating Statement Summary Net revenue $ 112,000,000 Less: Operating expenses 44,800,000 Depreciation and amortization 34,000,000 General and administrative expenses 7,200,000 Management expense 4,200,000 Income from operations 21,800,000 Less: Interest expense* 6,400,000 Net income (loss) $ 15,400,000 *At 8% interest only. Panel B. Balance Sheet Summary Assets Cash $ 52,700,000 Rents receivable 3,700,000 Properties @ cost 820,000,000 Less: Accumulated depreciation…
You have been asked by the VP of Finance to identify the appropriate accounting treatment for the following series of investments made by Metaphor Investments Inc. (Round per share calculations to 1 decimal place in percentage.) • Purchased 86,250 of the 125,000 shares outstanding for The Natural Pharmacy Inc. . Purchased 50,400 of 120,000 shares outstanding for Metro Inc. • Purchased 60,300 of 90,000 shares outstanding for Le Petite Boulangerie Inc. Purchased 59,850 of 95.000 shares outstanding for Wood Passion Ltd. . Company The Natural Pharmacy Inc. Metro Inc. Le Petite Boulangerie Inc Wood Passion Ltd Percentage of purchased shares Treatment % 11%
O You have been asked by the VP of Finance to identify the appropriate accounting treatment for the following series of investments made by Metaphor Investments Inc. (Round per share calculations to 1 decimal place in percentage.) • Purchased 58,000 of the 100,000 shares outstanding for The Natural Pharmacy Inc. • Purchased 58,750 of 125,000 shares outstanding for Metro Inc. • Purchased 79,200 of 120,000 shares outstanding for Le Petite Boulangerie Inc. • Purchased 67,500 of 125,000 shares outstanding for Wood Passion Ltd. Company The Natural Pharmacy Inc. Metro Inc Le Petite Boulangerie Inc Wood Passion Ltd Percentage of purchased shares % % % % Treatment
Record the appropriate journal entry to reflect the following: The investments that Veggies-R-Us. Inc. currently has in their investment account (current asset) represents investments that were purchased recently. Based upon stock market auotes obtained for December 31, 20XX, the market value of these investments = $112,000. (It is management's intent to actively manage these shares for profit.) You have been provided with the partial Trail Balance for this company below: Veggies-R-Us. Trial Balance (Partial) December 31, 20XX Cash $26,750 (Debit) Accounts Receivable $47,630 (Debit) Allowance for doubtful accounts $250 (Debit) Prepaid rent $1,680 (Debit) Supplies $8,700 (Debit) Investments $113,520 (Debit) Furniture $15,350 (Debit)
Cosmos Corporation had the following long-term investment transactions. Year 1 January 2 Purchased 5,000 shares of Visual, Inc. for $42 per share. October 15 Received Visual, Inc. cash dividend of $2 per share. December 31 Visual reported a net loss of $66,000 for the year. Year 2 February 2 Sold 5% of the shares of Visual Inc for $7000. Prepare the journal entries Cosmos Corporation should record for these transactions and events.
Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Nash's Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Swifty Company. 1. At the beginning of Year 1, Nash's bought 30% of Swifty's common stock at its book value. Total book value of all Swifty's common stock was $720,000 on this date. 2. (a) During Year 1, Swifty reported $50,000 of net income. (b) During Year 1, Swifty paid $28,000 of dividends. 3. (a) During Year 2, Swifty reported $25,000 of net income. (b) During Year 2, Swifty paid $18,000 of dividends. 4. (a) During Year 3, Swifty reported a net loss of $8,000. (b) During Year 3, Swifty paid $3,500 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.
Identify how much to add or deduct from the Investment in Associate account of ABC based on the following transactions or events: Net income reported for the year by the associate was P2,500,000. Adjust net income with data from the following: Dividends declared by X is P2,000,000. It has 90,000 6%, P100-par value preference shares outstanding which are cumulative and participating. No dividends were declared in the previous year.
2. In January 2018, the management of ABC Company concludes that it has sufficient cash to purchase some short-term investments in bonds and shares. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of DET shares for 45,000TL. Mar. 1 Purchased 600 shares of STL shares for 30,000TL. Mar.25 DET declared 0.90TL dividends per share payable on September 1. June 1 Purchased 40 1,000TL 9% CTN bonds for 60,000TL. Interest is payable semiannually on June 1 and November 1. July 1 Sold 200 shares of DET and collected totally 19,880TL. Aug. 1 Received a 1.5TL per share cash dividend on the STL shares. Sept. 1 Received cash dividend on DET shares. Oct. 1 Sold 20 CTN bonds and collected totally 25,750TL. Nov. 1 Received the semiannual interest on CTN bonds. Required: Journalize and post the transactions.
Bean Corporation purchased 35% of the outstanding shares of common stock of Williams Corporation as a long-term investment. Subsequently, Williams Corporation reported net income. What journal entry would Bean Corporation use to record its share of the earnings of Williams Corporation? debit Cash: credit Dividend Revenue debit Investment in Williams Corporation Stock: credit Cash debit Cash: credit Investment in Williams Corporation debit Investment in Williams Corporation; credit Income of Williams Corporation
The beginning balance sheet of Desk Source Co. included a $700,000 investment in Est stock (25% ownership, Desk has significant influence over Est). During the year, Desk Source completed the following investment transactions: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions for the year of Desk Source. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Mar. 3: Purchased 9,000 shares at $8 per share of Rast Software common stock as a long-term equity investment, representing 2% ownership, no signifi Date Accounts and Explanation Credit Mar. 3 Requirements Debit 1. Journalize the transactions for the year of Desk Source. 2. Post transactions to T-accounts to determine the December 31, 2024, balances related to the investment and…
Janus Company had the following journal entry: Debit Credit Cash $30,000 Common Stock $30,000 From this entry, we can determine that Janus: a Purchased $30,000 of another company’s common stock b Repurchased $30,000 of their own common stock. c Issued $30,000 of their own common stock d urchased $30,000 of Investments.

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