Question
In: Accounting
Stonemusic purchased several investments during 2018. At 31 December 2018, the company had the following investment...
Stonemusic purchased several investments during 2018. At 31
December 2018, the company had the following investment in ordinary
share below. The investment is considered as
available-for-sale:
100,000 Starship shares
Cost per share $12
Fair value per share $10
During 2019, the net income for Starship is $200,000. Starship declared and paid cash dividends of $1.2 each share on 31 December 2019.
The fair value of the investments on 31 December 2019 is shown as below:
Starship Company Fair Value
$15 per hare
Assume Stonemusic has significant influence over the management of Starship Company (the investment represents 25% interest in the net assets of Starship), what is the reported amount of the investment shown on Stonemusic’s 2019 statement of financial position?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Superstar Limited purchased several investments during 2018. At 31 December 2018, the company had the following...
Superstar Limited
purchased several investments during 2018. At 31 December 2018, the
company had the following investments in ordinary share listed
below. All investments are considered as available-for-sale:
Cost per share
Fair value per share
100,000 Sunshine Company shares
$12
$10
120,000 Orlando Company shares
$18
$25
On 1 May 2019, the
company sold out half of Orlando shares at $28 each and paid $5,000
brokerage fee.
The company acquired
6% bonds from Fantastic Company on 1 October 2019 at...
At December 31, 2018, Hull-Meyers Corp. had the followinginvestments that were purchased during 2018, its...
At December 31, 2018, Hull-Meyers Corp. had the following
investments that were purchased during 2018, its first year of
operations:
Cost
Fair Value
Trading Securities:
Security A
$
970,000
$
984,000
Security B
175,000
169,800
Totals
$
1,145,000
$
1,153,800
Securities Available-for-Sale:
Security C
$
770,000
$
843,000
Security D
970,000
987,800
Totals
$
1,740,000
$
1,830,800
Securities to Be Held-to-Maturity:
Security E
$
560,000
$
571,400
Security F
685,000
679,600
Totals
$
1,245,000
$
1,251,000
No investments were sold...
The following investment transactions happened during the fiscal year ending December 31, 2018 for Dolly Company....
The following investment transactions happened during the fiscal
year ending December 31, 2018 for Dolly Company.
Jan
2 Purchased
30,000 shares of common stock of Vita Company at $10 per share,
plus a brokerage fee of $3,000. Dolly Company does not have a
significant influence on Vita Company, and classified this
investment as long-term.
Feb
26 Purchased
25,000 shares of common stock of Farie Inc. at $38 per share.
Because this investment represents 25% of Farie’s total outstanding
shares, it gives Dolly...
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several...
Following are selected accounts for Mergaronite Company and
Hill, Inc., as of December 31, 2018. Several of Mergaronite’s
accounts have been omitted. Credit balances are indicated by
parentheses. Dividends were declared and paid in the same
period.
Mergaronite
Hill
Revenues
$(600,000)
$(250,000)
Cost of goods sold
280,000
100,000
Depreciation expense
120,000
50,000
Investment income
Not given
NA
Retained earnings, 1/1/18
(900,000)
(600,000)
Dividends declared
130,000
40,000
Current assets
200,000
690,000
Land
300,000
90,000
Buildings (net)
500,000
140,000
Equipment (net)
200,000...
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several...
Following are selected accounts for Mergaronite Company and
Hill, Inc., as of December 31, 2018. Several of Mergaronite’s
accounts have been omitted. Credit balances are indicated by
parentheses. Dividends were declared and paid in the same
period.
Mergaronite
Hill
Revenues
$
(602,000
)
$
(240,000
)
Cost of goods sold
260,000
114,000
Depreciation expense
120,000
44,000
Investment income
NA
NA
Retained earnings, 1/1/18
(892,000
)
(602,000
)
Dividends declared
120,000
44,000
Current assets
200,000
662,000
Land
318,000
94,000
Buildings (net)...
Following are selected accounts for Mergaronite Company and Hill, Inc., as of December 31, 2018. Several...
Following are selected accounts for Mergaronite Company and
Hill, Inc., as of December 31, 2018. Several of Mergaronite’s
accounts have been omitted. Credit balances are indicated by
parentheses. Dividends were declared and paid in the same
period.
Mergaronite
Hill
Revenues
$
(584,000
)
$
(248,000
)
Cost of goods sold
298,000
112,000
Depreciation expense
106,000
58,000
Investment income
NA
NA
Retained earnings, 1/1/18
(896,000
)
(590,000
)
Dividends declared
134,000
44,000
Current assets
210,000
676,000
Land
316,000
84,000
Buildings (net)...
Marin Company had 214,800 shares of common stock outstanding on December 31, 2018. During the year...
Marin Company had 214,800 shares of common stock outstanding on
December 31, 2018. During the year 2019, the company issued 8,000
shares on May 1 and retired 14,000 shares on October 31. For the
year 2019, Marin Company reported net income of $247,200 after a
loss from discontinued operations of $43,300 (net of tax).
What earnings per share data should be reported at the bottom of
its income statement? (Round answers to 2 decimal
places, e.g. $2.55.)
Marin Company
Income...
15. The American Cancer Society had the following costs during the year ended December 31, 2018:...
15. The American Cancer Society
had the following costs during the year ended December 31,
2018:
Fund-Raising $650,000
Administrative (Including 90,000 for
data processing) 390,000
Research 130,000
What should the American Cancer
Society report as program service expenses? Explain
Rozo company carries the following investments on its books at December 31, 2005, and December 31,...
Rozo company carries the following investments on its books at
December 31, 2005, and December 31, 2006. All securities were
purchased during 2005.
Trading Securities:
Company
Cost
Value December 31, 2005
Value December 31, 2006
A Company
$25,000
$13,000
$20,000
B Company
$13,000
$20,000
$20,000
C Company
$35,000
$30,000
$25,000
Available for Sale Securities:
Company
Cost
Value December 31, 2005
Value December 31, 2006
X Company
$210,000
$130,000
$50,000
Y Company
$50,000
$60,000
$70,000
A. Prepare the necessary journal entries...
During 2018, Speedway Financial Corporation had the following held for trading investment transactions: Feb. 1 Purchased...
During 2018, Speedway Financial Corporation had the following
held for trading investment transactions: Feb. 1 Purchased 580 CBF
common shares for $34,220. Mar. 1 Purchased 780 RSD common shares
for $21,840. Apr. 1 Purchased 7% MRT bonds at face value, for
$65,000. Interest is received semi-annually on April 1 and October
1. July 1 Received a cash dividend of $3 per share on the CBF
common shares. Aug. 1 Sold 180 CBF common shares at $57 per share.
Sept. 1...
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