Homework Answers
Requirement a):-
| Date | Acounts titles | Debit $ | Credit $ |
| Dec 31,2021 | Loss on investment in Laser Company | 430000 | |
| Investment in Laser Company | 430000 | ||
| [16,30,000-12,00,000] | |||
| Dec 31,2021 | Loss on investment in FourSquare Company | 760000 | |
| Investment in FourSquare Company | 760000 | ||
| [3,240,000-2,480,000] |
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Sheridan Company has the following investments as of December 31, 2020: Investments in common stock of...
Splish Company has the following investments as of December 31, 2020: Investments in common stock of...
Splish Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,540,000 Investment in debt securities of FourSquare Company $3,590,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Splish’s stock investments does not result in significant influence on the operations of Laser Company. Splish’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued...
Crane Company has the following investments as of December 31, 2020:
Crane Company has the following investments as of December 31, 2020:Investments in common stock of Laser Company$1,540,000Investment in debt securities of FourSquare Company$3,590,000In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Crane’s stock investments does not result in significant influence on the operations of Laser Company. Crane’s debt investment is considered held-to-maturity. At December 31, 2021, the shares in Laser Company are valued at $1,120,000; the debt investment securities of FourSquare...
E17.22 (LO 4) (Impairment) Elaina Company has the following investments as of December 31, 2020: Investments...
E17.22 (LO 4) (Impairment) Elaina Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,500,000 Investment in debt securities of FourSquare Company $3,300,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Elaina's stock investments does not result in significant influence on the operations of Laser Company. Elaina's debt investment is considered held-to-maturity. At December 31, 2021, the shares in...
Up ence betwe en (b) Record the journal entry, if any, necessary at Det E17-22 (L04)...
Up ence betwe en (b) Record the journal entry, if any, necessary at Det E17-22 (L04) (Impairment) Elaina Company has the following investments as of December JI, Investments in common stock of Laser Company $1,500,000 Investment in debt securities of FourSquare Company $3,300,000 In both investments, the carrying value and the fair value of these two investments are the same at December stock investments does not result in significant influence on the operations of Laser Company. Elaina's debt in ered...
Exercise 16-12 a-b (Video) Sheridan Company has the following data at December 31, 2020. Securities Trading...
Exercise 16-12 a-b (Video) Sheridan Company has the following data at December 31, 2020. Securities Trading Available-for-sale Cost $121,500 101,100 Fair Value $125,000 93,800 The available-for-sale securities are held as a long-term investment. Your answer is correct. Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (Credit acc entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (1) Fair Value Adjustment-Trading...
Presented below is information related to copyrights owned by Sheridan Company at December 31, 2020. Cost...
Presented below is information related to copyrights owned by
Sheridan Company at December 31, 2020.
Cost
$8,640,000
Carrying amount
4,270,000
Expected future net cash flows
3,940,000
Fair value
3,360,000
Assume that Sheridan Company will continue to use this copyright in
the future. As of December 31, 2020, the copyright is estimated to
have a remaining useful life of 10 years.
(a)
Prepare the journal entry to record the impairment of the asset at
December 31, 2020. The company does not...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Monty...
On December 31, 2020, the stockholders' equity section of Sheridan Company was follows: Common stock par...
On December 31, 2020, the stockholders' equity section of Sheridan Company was follows: Common stock par value $10; authorized 40000 Shares issued and outstanding 12000 shares Additional paid in capital Retained earnings Total stockholders' equity $ 120000 111000 On March 31, 2021, Sheridan dedared 10 stock dividend, and accordingly 100 were issued when the sustained a net loss of $40200. The balance of Sheridan's retained wings of March 31, 2021, should be value the the per har for the three...
Sage Company has the following securities in its portfolio on December 31, 2020. None of these...
Sage Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc.,
Common
$77,600
$73,200
5,000 shares of Wallace
Corp., Common
172,900
167,700
400 shares of Martin, Inc.,
Preferred
63,500
65,100
$314,000
$306,000
All of the securities were purchased in 2020.
In 2021, Sage completed the following securities
transactions.
March 1
Sold the 1,500 shares of
Gordon, Inc., Common,...
Indigo Company has the following securities in its portfolio on December 31, 2020. None of these...
Indigo Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $79,600 $74,700 5,000 shares of Wallace Corp., Common 170,900 165,800 400 shares of Martin, Inc., Preferred 65,800 67,200 $316,300 $307,700 All of the securities were purchased in 2020. In 2021, Indigo completed the following securities transactions March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
E17.22 (LO 4) (Impairment) Elaina Company has the following investments as of December 31, 2020: Investments in common stock of Laser Company $1,500,000 Investment in debt securities of FourSquare Company $3,300,000 In both investments, the carrying value and the fair value of these two investments are the same at December 31, 2020. Elaina's stock investments does not result in significant influence on the operations of Laser Company. Elaina's debt investment is considered held-to-maturity. At December 31, 2021, the shares in...
Up ence betwe en (b) Record the journal entry, if any, necessary at Det E17-22 (L04) (Impairment) Elaina Company has the following investments as of December JI, Investments in common stock of Laser Company $1,500,000 Investment in debt securities of FourSquare Company $3,300,000 In both investments, the carrying value and the fair value of these two investments are the same at December stock investments does not result in significant influence on the operations of Laser Company. Elaina's debt in ered...
Exercise 16-12 a-b (Video) Sheridan Company has the following data at December 31, 2020. Securities Trading Available-for-sale Cost $121,500 101,100 Fair Value $125,000 93,800 The available-for-sale securities are held as a long-term investment. Your answer is correct. Prepare the adjusting entries to report: (1) Trading securities at fair value and (2) Available-for-sale securities at fair value. (Credit acc entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation Debit Credit (1) Fair Value Adjustment-Trading...
Presented below is information related to copyrights owned by
Sheridan Company at December 31, 2020.
Cost
$8,640,000
Carrying amount
4,270,000
Expected future net cash flows
3,940,000
Fair value
3,360,000
Assume that Sheridan Company will continue to use this copyright in
the future. As of December 31, 2020, the copyright is estimated to
have a remaining useful life of 10 years.
(a)
Prepare the journal entry to record the impairment of the asset at
December 31, 2020. The company does not...
Monty Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2020. The purchase price was $1,310,000 for 52,400 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2021. Kulikowski reported net income of $701,000 for 2021. The fair value of Kulikowski's stock was $28 per share at December 31, 2021. Assume that the security is a trading security. Prepare the journal entries for Monty...
On December 31, 2020, the stockholders' equity section of Sheridan Company was follows: Common stock par value $10; authorized 40000 Shares issued and outstanding 12000 shares Additional paid in capital Retained earnings Total stockholders' equity $ 120000 111000 On March 31, 2021, Sheridan dedared 10 stock dividend, and accordingly 100 were issued when the sustained a net loss of $40200. The balance of Sheridan's retained wings of March 31, 2021, should be value the the per har for the three...
Sage Company has the following securities in its portfolio on
December 31, 2020. None of these investments are accounted for
under the equity method.
Investments
Cost
Fair Value
1,500 shares of Gordon, Inc.,
Common
$77,600
$73,200
5,000 shares of Wallace
Corp., Common
172,900
167,700
400 shares of Martin, Inc.,
Preferred
63,500
65,100
$314,000
$306,000
All of the securities were purchased in 2020.
In 2021, Sage completed the following securities
transactions.
March 1
Sold the 1,500 shares of
Gordon, Inc., Common,...
Indigo Company has the following securities in its portfolio on December 31, 2020. None of these investments are accounted for under the equity method. Investments Cost Fair Value 1,500 shares of Gordon, Inc., Common $79,600 $74,700 5,000 shares of Wallace Corp., Common 170,900 165,800 400 shares of Martin, Inc., Preferred 65,800 67,200 $316,300 $307,700 All of the securities were purchased in 2020. In 2021, Indigo completed the following securities transactions March 1 Sold the 1,500 shares of Gordon, Inc., Common,...
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