Homework Answers
When Cash dividend received it means it is revenue so when revenue received it is called dividend revenue not dividend expense.
So any Cash dividend received from stock investments with insignificant influence are recorded as dividend expense is False
So answer is False
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Any cash dividends received from stock investments with insignificant influence are recorded as Dividend Expense. True...
All of the following statements regarding accounting for stock investments with insignificant influence under U.S. GAAP...
All of the following statements regarding accounting for stock investments with insignificant influence under U.S. GAAP are true except: Multiple Choice When an investor owns less than 20% of voting stock, the investor is presumed to have insignificant influence. Stock investments with insignificant influence are reported at fair value. The investment account equals the acquisition cost plus the share of investee income plus the share of investee dividends. Stock investments with insignificant influence are classified as either short or long...
Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P41 Rose Company had no...
Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P41 Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short- term stock investments with insignificant influence. Apr. July Aug. 16 Purchased 3,500 shares of Gem Co. stock at $24 per share. 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. 20 Purchased 1,000 shares of Xerox stock at $16 per share. 15 Received a $1.00 per share...
Exercise 15-10 Transactions and fair value adjustments for stock investments with insignificant influence LO P4 Carlsville...
Exercise 15-10 Transactions and fair value adjustments for stock investments with insignificant influence LO P4 Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. 2:36:07 ook July 22 Purchased 1,400 shares of Hunt Corp. at $26 per...
Six months ago, a company purchased stock investments with insignificant influence for $70,000. This is the...
Six months ago, a company purchased stock investments with insignificant influence for $70,000. This is the company’s first and only purchase of stock. The current year-end fair value of the stock is $74,000. The company should record a: Multiple Choice Debit to Unrealized Loss-Income for $4,000. Credit to Investment Revenue for $4,000. Debit to Investment Revenue for $4,000. Debit to Unrealized Gain-Equity for $4,000. Credit to Dividend Revenue for $4,000.
McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $48,400 in cash dividends from...
McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $48,400 in cash dividends from Gondor. The entry to record the cash dividend received from Gondor would include a: Multiple Choice Debit to Dividends for $121,000. Credit to Equity Method Investments for $48,400. Debit to Dividend Revenue for $48,400. Credit to Equity Method Investments for $121,000. Credit to Cash for $48,400.
McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $62,800 in cash dividends from...
McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $62,800 in cash dividends from Gondor. The entry to record the cash dividend received from Gondor would include Multiple Choice Credit to Cash for $62,800 Credit to Equity Method Investments for $62,800 O Credit to Equity Method Investments for $157,000 Debit to Dividend Revenue for $62.800 Debit to Dividends for $157.000 < Prev 28 of 36 Next > SAMSUNG to search
On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars...
On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Portfolio of Stock Investments Cost Fair Value Apple stock $ 8,400 $ 11,200 Chipotle stock 7,200 4,700 Under Armour stock 12,800 14,900 1. After the fair value adjustment is made, prepare the assets section of Mars Co.’s December 31 classified balance sheet. Assume Mars plans to sell its trading securities within the next six months. 2. In...
On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars...
On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Portfolio of Stock Investments Apple stock Chipotle stock Under Armour stock Cost $ 6,600 4,800 12,200 Fair Value $ 8,800 2,300 14,200 1. After the fair value adjustment is made, prepare the assets section of Mars Co.'s December 31 classified balance sheet. Assume Mars plans to sell its trading securities within the next six months. 2. In...
Matt knows that cash dividends are taxable in general. But when he received stock dividend, he...
Matt knows that cash dividends are taxable in general. But when he received stock dividend, he was wondering if the stock dividend is taxable, because he didn’t really receive anything other than the stock certificate which only means a piece of paper to him. He wishes to consult with you on whether his stock dividend is taxable. How would you answer and what are the question(s) you may ask Matt, if any, for your accurate and proper consultation?
Day Co, received dividends from its common stock investments during the year ended December 31, Year...
Day Co, received dividends from its common stock investments during the year ended December 31, Year 1, as follows: A stock dividend of 400 shares from Parr Corp. on July 25, Year 1, when the market price of Parr's shares was $20 per share. Day owns less than 1% of Parr's common stock A cash dividend of $15,000 from Lark Corp. in which Day owns a 25% interest. A majority of Lark's directors are also directors of Day. What amount...
Problem 15-4A Recording, adjusting, and reporting stock investments with insignificant influence P41 Rose Company had no short-term investments prior to this year. It had the following transactions this year involving short- term stock investments with insignificant influence. Apr. July Aug. 16 Purchased 3,500 shares of Gem Co. stock at $24 per share. 7 Purchased 2,000 shares of PepsiCo stock at $49 per share. 20 Purchased 1,000 shares of Xerox stock at $16 per share. 15 Received a $1.00 per share...
Exercise 15-10 Transactions and fair value adjustments for stock investments with insignificant influence LO P4 Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. 2:36:07 ook July 22 Purchased 1,400 shares of Hunt Corp. at $26 per...
McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $48,400 in cash dividends from Gondor. The entry to record the cash dividend received from Gondor would include a: Multiple Choice Debit to Dividends for $121,000. Credit to Equity Method Investments for $48,400. Debit to Dividend Revenue for $48,400. Credit to Equity Method Investments for $121,000. Credit to Cash for $48,400.
McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $62,800 in cash dividends from Gondor. The entry to record the cash dividend received from Gondor would include Multiple Choice Credit to Cash for $62,800 Credit to Equity Method Investments for $62,800 O Credit to Equity Method Investments for $157,000 Debit to Dividend Revenue for $62.800 Debit to Dividends for $157.000 < Prev 28 of 36 Next > SAMSUNG to search
On December 31, Mars Co. had the following portfolio of stock investments with insignificant influence. Mars had no stock investments in prior periods. Portfolio of Stock Investments Apple stock Chipotle stock Under Armour stock Cost $ 6,600 4,800 12,200 Fair Value $ 8,800 2,300 14,200 1. After the fair value adjustment is made, prepare the assets section of Mars Co.'s December 31 classified balance sheet. Assume Mars plans to sell its trading securities within the next six months. 2. In...
Day Co, received dividends from its common stock investments during the year ended December 31, Year 1, as follows: A stock dividend of 400 shares from Parr Corp. on July 25, Year 1, when the market price of Parr's shares was $20 per share. Day owns less than 1% of Parr's common stock A cash dividend of $15,000 from Lark Corp. in which Day owns a 25% interest. A majority of Lark's directors are also directors of Day. What amount...
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