JP undertook the following share transactions: On January 1, Year 1, JP purchased 30 shares of Micron Co. for $5 per share. On June 30, Year 2, JP sold all 30 shares of Micron Co. for $3 per share. On July 15, Year 2, JP purchased 20 shares of Micron Co. for $2 per share.
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- On 30 April 20X2, Marc Company purchased 4,000 shares of Spencer Ltd. for $17 per share plus $400 in commission. In 20X2, the company received a $0.65 per share dividend, and the shares had a fair value of $16 per share at the end of the year. In 20X3, the dividend was $1.05 per share, and the fair value was $20 per share at the end of the year. In 20X4, the shares were sold for $18 per share less a $550 commission. Required:1. Show the amounts and accounts that would be reported in earnings and the statement of financial position for 20X2, 20X3, and 20X4 if the company uses the: (Negative amounts should be indicated by minus sign.)a. Cost method. b. FVTPL method. c. FVOCI-Equity method; realized amounts are transferred to retained earnings.Baskin purchased 24,000 common shares (15%) of Robbin on January 1, Year 5, for $293,000 and classified the investment as FVTPL. Robbin reported net income of $103,000 in Year 5 and $108,000 in Year 6, and paid dividends of $58,000 in each year. Robbin's shares were trading at $16 per share on December 31, Year 5, and January 1, Year 6. On January 1, Year 6, Baskin obtained significant influence over the operating, investing, and financing decisions of Robbin when the controlling shareholder sold some shares in the open market and lost control over Robbin. Accordingly, the investment in Robbin was reclassified to an investment in associate. On December 31, Year 6, Baskin sold its investment in Robbin for $17 per share. Required: Prepare all journal entries for Years 5 and 6 related to Baskin's investment in Robbin. Date January 1, Year 5 December 31, Year 5 December 31, Year 5 Date December 31, Year 6 December 31, Year 6 December 31, Year 6 General Journal Investment in Robbin Cash…On February 1, Brutus Company purchased 1,000 shares (2% ownership) of Wynne Company common stock for $25 per share. On March 20, Brutus Company sold 200 shares of Wynne stock for $4,700. Brutus received a dividend of $1.20 per share on April 25. On June 15, Marcus sold 300 shares of Wynne stock for $8,500.Prepare the journal entries to record the transactions described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15
- On July 7, Splish Ltd. purchased 1,100 common shares in a privately-owned company named TWR Ltd. As the TWR shares were not traded on any stock exchange, Splish elected to account for the investment using the cost method. The price of the shares was $7.51 per share, plus a 3% commission charged by the broker who arranged the purchase. On September 1, TWR Ltd. declared dividends of $0.63 per share, paid on September 30. On November 15, Splish sold 1,023 of the shares for $8.30 per share; again, there was a 2% commission on the sale. Prepare the journal entries on the books of Splish to record the above transactions.on January 1, T purchased both a bond and stock of CorporationX. The bond was purchased for $10,000, had a face value of $10,000 and paid 10% interest on December 31 of each year. The stock was purchased for $10,000 and paid a dividend of $1,000 on December 31. T sold both the stock and bond on July 1 of the same year. The bond sold for $10,300 and the stock for $11,000. What income, gain or loss, including character type (eg capital gain, interest, dividend, ordinary will T recognize as a result of the sales?Ayayai Corporation purchased 420 shares of Sherman Inc. common stock for $12,300 (Ayayai does not have significant influence). During the year, Sherman paid a cash dividend of $3.50 per share. At year-end, Sherman stock was selling for $31.50 per share. Prepare Ayayai's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (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 O for the amounts.) No. Account Titles and Explanation (a) (b) (c) Debit Credit
- Ayayai Corporation purchased 300 common shares of Sigma Inc. for trading purposes for $9,300 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.65 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Ayayai sold the Sigma shares for $34.60 per share. Prepare Ayayai Corporation’s journal entry to record the purchase of the 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit September 8 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare Ayayai Corporation’s journal entry to record the dividends received. (Credit…On January 1, Year 2, Justo purchases 30,000 shares of the 100,000 outstanding shares of stock in Bonita Corp. for $5 per share. During the year, Bonita Corporation has $20,000 of net income and pays $4,000 in dividends. On December 31, Year 2, the value of a share of Bonita Corporation stock is $6 per share. Assuming Justo uses the equity method of accounting for Bonita stock, what is the amount shown for Investment in Bonita on the December 31, Year 2, balance sheet? $156,000 O $180,000 O $154,800 O $150,000Chowking Company engaged in the following investment transactions during the current year: February 1 Purchased 5,000 ordinary shares of ZZZ Company for P200 per share plus a brokerage commission of P50,000. These shares are classified as trading securities. June 25 Received P120 per share dividend on ZZZ Company shares. October 1 Purchased 20,000 shares of XXX Company for P150 per share plus brokerage fee of P100,000. These shares are designated at FVOCI. December 31 Received P50 per share dividend on XXX Company shares. 31 ZZZ Company shares are selling for P250 and XXX shares are selling for P180. What net amount of income should be reported for the current year?
- On January 1, 20X8, Ball Corporation purchased shares of Leftwich Company common Stock. Assume the stock acquired by Ball represents 15% of Leftwich’s voting stock and that Ball has no influence over Leftwich’s business decisions. Use the financial statement effects template (with amounts and accounts) to record the following transactions. Ball purchased 5,000 common shares of Leftwich at $15 cash per share. Leftwich reported annual net income of $40,000. Ball received a cash dividend of $1.10 per common share from Leftwich. Year-end market price of Leftwich common stock is $19.00 per share. Assume that the stock acquired by Ball represents 30% of Leftwich’s voting stock and that Ball accounts for this investment using the equity method because it is able to exert significant influence. Use the financial statement effects template (with amounts and accounts) to record the following transactions. Ball purchased 5,000 common shares of Leftwich at $15 cash per share. Leftwich…6) On 1/18/20, Ehrlich Inc. purchased 30,000 shares of the common stock of XYZ Co. for $16 per share. Ehrlich’s ownership represents 10% of XYZ’s total shares. On 6/15/20, XYZ Co. paid dividends of $3.00 a share. On 12/31/20, the fair market value of the XYZ stock was $20 a share. On 3/3/21, Ehrlich sold 10,000 shares of XYZ stock for $21 per share. On 6/15/21, XYZ Co. paid dividends of $3.50 a share. On 12/31/21, the fair market value of the XYZ stock was $21 per share. Instructions: Prepare the 6 journal entries that Ehrlich would make during 2020 and 2021 to account for its investment AND determine the amount of the investment in XYZ that would be shown on the balance sheet at 12/31/20 and at 12/31/21.Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,000 shares of GE common stock that Adams had purchased in February for $37,000 as an investment. GE’s shares had a market value of $35 per share on the declaration date. Prepare the journal entries to record the property dividend on the declaration and payment dates.