Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting...
Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities. Complete the necessary adjusting entry
Homework Answers
| Date | General Journal | Debit | Credit |
| Dec 31 | Fair value adjustment - stock | $1,000 | |
| Unrealized gain - Income | $1,000 | ||
| ($6,000 - $5,000) |
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Jerome has insignificant influence of Melina Corporation because
it owns less than 20% of the voting...
requires explanation Videos Account for equity Securities within for equity securities with insignificant L O Required...
requires explanation
Videos Account for equity Securities within for equity securities with insignificant L O Required information Knowledge Check 01 Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities. Complete the necessary adjusting entry selecting the account names from the pull-down menus and...
On July 1, Jerome received $200 in dividends from Melina Corporation on which it owns less...
On July 1, Jerome received $200 in dividends from Melina Corporation on which it owns less than 20% of the voting stock. Complete the necessary journal entry selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
please help with the above questions, thank you! Journal entry worksheet On September 15, Jerome, Inc.,...
please help with the above questions, thank you!
Journal entry worksheet On September 15, Jerome, Inc., paid $8,900 to make a long-term investment in available-for-sale securities by purchasing notes of Topper, Inc. Complete the necessary journal entry by selecting the account names from the pull- down menus and entering dollar amounts in the debit and credit columns. Note: Enter debits before credits Date General Journal Debit Credit Sep 15 explanation View general journal Record entry Clear entry Assume that Jerome's...
Equity securities in which the investor owns less than 20% ownership in the voting stock of...
Equity securities in which the investor owns less than 20% ownership in the voting stock of the investee generally can be classified as equity investments. A. held-to-maturity B. no significant influence C. controlling interest D. significant influence
Hybrid Corporation began operations in 2018 and during that year purchased equity investments. It owns less...
Hybrid Corporation began operations in 2018 and during that year purchased equity investments. It owns less than 20% of the voting shares for all companies whose stock it purchased. The year-end cost and fair values for its long-term investments in equity stock are shown below: Cost Fair Value December 31, 2018 $200,000 $180,000 December 31, 2019 $340,000 $375,000 December 31, 2020 $100,000 $ 60,000 Prepare journal entries to record each year-end’s fair value adjustment for the above securities.
________ are equity securities in which the investor owns 20% or more, but less than 50%,...
________ are equity securities in which the investor owns 20% or more, but less than 50%, of the investee's voting stock. Held-to-maturity investments Significant interest investments Available-for-sale investments Controlling interest investments
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been...
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $50,000,000 Franklin originally purchased its 15% interest for $35,000,000. Franklin purchases an additional 10% interest in Grantham's voting stock for $40,000,000 and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Grantham reports net...
The following information shows Carperk Company's individual investments in securities during its current year, along with...
The following information shows Carperk Company's individual investments in securities during its current year, along with the December 31 fair values. Investment in Brava Company bonds: $391,050 cost; $425,071 fair value. Carperk intends to hold these bonds until they mature in 5 years. Investment in Baybridge common stock: 29,500 shares; $310,885 cost; $337,932 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge. Investment in Duffa bonds: $160,331 cost; $172,837 fair value. This investment...
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...
The following information shows Carperk Company's individual investments in securities during its current year, along with...
The following information shows Carperk Company's individual investments in securities during its current year, along with the December 31 fair values. Investment in Brava Company bonds: $324,250 cost; $352,460 fair value. Carperk intends to hold these bonds until they mature in 5 years. Investment in Baybridge common stock: 29,500 shares; $257,779 cost; $280,206 fair value. Carperk owns 32% of Baybridge's voting stock and has a significant influence over Baybridge. Investment in Duffa bonds: $132,943 cost; $143,313 fair value. This investment...
requires explanation
Videos Account for equity Securities within for equity securities with insignificant L O Required information Knowledge Check 01 Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities. Complete the necessary adjusting entry selecting the account names from the pull-down menus and...
please help with the above questions, thank you!
Journal entry worksheet On September 15, Jerome, Inc., paid $8,900 to make a long-term investment in available-for-sale securities by purchasing notes of Topper, Inc. Complete the necessary journal entry by selecting the account names from the pull- down menus and entering dollar amounts in the debit and credit columns. Note: Enter debits before credits Date General Journal Debit Credit Sep 15 explanation View general journal Record entry Clear entry Assume that Jerome's...
Equity securities in which the investor owns less than 20% ownership in the voting stock of the investee generally can be classified as equity investments. A. held-to-maturity B. no significant influence C. controlling interest D. significant influence
Case IV: Franklin Corporation owns 15% of the voting stock of Grantham Company and has been reporting it as an equity investment with no significant influence. At the beginning of the current year, the investment has a fair value of $50,000,000 Franklin originally purchased its 15% interest for $35,000,000. Franklin purchases an additional 10% interest in Grantham's voting stock for $40,000,000 and determines that the equity method is now appropriate. Any basis difference is attributed to goodwill. Grantham reports net...
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...
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