You have been asked by the VP of Finance to identify the appropriate accounting treatment for the follow investments made by Metaphor Investments Inc. (Round per share calculations to 1 decimal place in pr • 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 Percentage of purchased shares % Treatment

You have been asked by the VP of Finance to identify the appropriate accounting treatment for the follow investments made by Metaphor Investments Inc. (Round per share calculations to 1 decimal place in pr • 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 Percentage of purchased shares % Treatment

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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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.
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…
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)
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…
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
Provide solutions in good accounting form. Thank you! PURPLE Corporation was incorporated at the beginning of the current year and provided the following information: How many shares were issued and outstanding? a. Issued - 390,000; Outstanding - 371,100 b. Issued - 390,000; Outstanding - 383,700 c. Issued - 385,500; Outstanding - 366,600 d. Issued - 385,500; Outstanding - 379,200
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