6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During...

Question

Question

6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During 2018, Paper, inc. earns $1,5

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Q6 b) 368,000

Investment revenue = 800,000 * (23000 / 50,000) = 368,000

Q7 a) Cash A/c _____________Dr. 2,000,000

To 11% Bonds A/c 2,000,000

(being bonds issued)

b) December 31, 2019

Interest on Bonds A/c___________Dr. (2,000,000 * 11%) 220,000

To Interest payable A/c 220,000

(being interest payable on bonds)

c) December 31, 2020

Interest on Bonds A/c___________Dr. (2,000,000 * 11%) 220,000

To Interest payable A/c 220,000

(being interest payable on bonds)

Add a comment

Answer 2

Similar Homework Help Questions

Blossom Company owns 10000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2018,...

Blossom Company owns 10000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2018, Taylor earns $940000 and pays cash dividends of $765000. If the beginning balance in the investment account was $620000, the balance at December 31, 2018 should be:
Oriole Company owns 14000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2018,...

Oriole Company owns 14000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2018, Taylor earns $1020000 and pays cash dividends of $825000. Oriole should report investment revenue for 2018 of $231000. $54600. $0. $285600.
On January 1, 2015, Lenore, Inc. issued $800,000, 6% bonds when the market rate was 7%....

On January 1, 2015, Lenore, Inc. issued $800,000, 6% bonds when the market rate was 7%. Interest is payable semiannually on December 31 and June 30 with bonds maturing on December 31, 2024. The bonds are callable at 103. On December 31, 2018, Lenore retired $400,000 of the bonds at the call price. At the time they retired the bonds, they also paid the accused interest for those bonds retired. Required: a. Prepare the journal entry to record the issuance...

Harmon Company owns 25% of the stock of Jackson Corp. which is 12,000 outstanding shares. The...

Harmon Company owns 25% of the stock of Jackson Corp. which is 12,000 outstanding shares. The Shares were purchased for $120,000 at the beginning of the year in 2018. During 2018, Harmon earns $1,400,000 in net income and pays dividends of $4 per share. (A) record the investment, (B) record the receipt of dividends, and (c) record the net income.
1.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but cannot...

1.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but cannot exert significant influence over Ranier. During 2009, Ranier earns $350,000 and pays cash dividends of $140,000. a. Indicate the effect on McKinley's 2009 Net Income? b.what is the net change in McKinley's Investment account during 2009? 2.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but can exert significant influence over Ranier. During 2009, Ranier earns $350,000 and pays...
60. On January 1, 2018, a company issues 1,000 shares of $1 par value common stock...

60. On January 1, 2018, a company issues 1,000 shares of $1 par value common stock for $20 per share. The journal entry to record this issuance would be: 61. On January 1, 2018, a company issues 1,000 shares of $1 no-par value common stock for $20 per share. The journal entry to record this issuance would be: 62. Suppose a company rents office space for one year, paying $12,000 ($1,000/month) in advance on September 1. Record the adjusting entry...

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of...

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of S100 million. The bonds mature on December 31,2048. Interest is payable annually on each December 31, beginning in 2019. Part Ji Determine the price of the bonds on December 31, 2018, assuming that the market rate of interest for similar bonds was 790. Part 2: Assuming the bonds were issues on December 31, 2018, prepare the journal entry to record the issuance on December...
11/1/2019 The Piano Co. borrowed funds to replace its damaged roof Amount borrowed ...

11/1/2019 The Piano Co. borrowed funds to replace its damaged roof Amount borrowed 180,000 Interest rate 5% Term of note 6 months INSTRUCTIONS: Prepare the journal entries to record the issuance of the note the accrual of interest at year end the payment of the note on its due date On January 1, 2019, Teasdale Corp. issued 10 year 800,000 5% bond payable. Interest is payable semi-annually on June 30 and December 31. INSTRUCTIONS: Prepare the journal entry...
Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued...

Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued for $640,000. Interest is payable annually on December 31. Using straight-line amortization, prepare journal entries to record (a) the bond issuance on January 1, 2018, and (b) the payment of interest on December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the issuance of bonds with a face value of $720,000...

Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...

Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton. On January 1, 2014, Hamilton sold $2,000,000 in 10-year bonds to the public at 110. The bonds had a cash interest rate of 8...

6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During...

Homework Answers

Add Answer to:
6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During...

Post as a guest

Earn Coins

Blossom Company owns 10000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2018,...

Oriole Company owns 14000 of the 50000 outstanding shares of Taylor, Inc. common stock. During 2018,...

On January 1, 2015, Lenore, Inc. issued $800,000, 6% bonds when the market rate was 7%....

Harmon Company owns 25% of the stock of Jackson Corp. which is 12,000 outstanding shares. The...

1.McKinley Company owns 15,000 of the 50,000 outstanding shares of Ranier Corporation common stock but cannot...

60. On January 1, 2018, a company issues 1,000 shares of $1 par value common stock...

On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of...

11/1/2019 The Piano Co. borrowed funds to replace its damaged roof Amount borrowed ...

Simko Company issued $720,000, 8-year, 6 percent bonds on January 1, 2018. The bonds were issued...

Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...

6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During...

Homework Answers

Add Answer to: 6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During...

Post as a guest

Earn Coins

Add Answer to:
6. Your company owns 23,000 of the 50,000 outstanding shares of Paper, Inc. common stock. During...