On 1/1/15 Tao Inc., a calendar year company, is created with an equity investment of $200....

On 1/1/15 Tao Inc., a calendar year company, is created with an equity investment of $200. On the same day the company purchases 1 share of stock in another company for $100. The 1 share of stock is classified as Available for Sale. On 3/31/15 the share of stock is worth $75 per share. On 6/30/15 the share of stock is worth $90 per share. On 9/30/15 the share of stock is worth $110 per share. On 12/31/15 the share of stock is worth $105 per share. The corporate tax rate is 25.00%. Quarterly revenues and expenses are provided below and are all in cash. Tao Inc issues financial statements quarterly.

C: Provide all journal entries and t-accounts necessary to account for this transaction on an annual basis (from inception of company to the end of the fiscal year)

D: Create the financial statements: Income Statement, Statement of Retained Earnings and Balance Sheet, (from inception of company to the end of fiscal year 1)

End Qtr 1: Revs: 193 Exp: 110,35

End Qtr 2: Revs 195 Exp: 100.46

End Qtr 3: Revs 199 Exp: 105.89

End Qtr 4: Revs 202 Exp: 104.22

Expert Solution

ekkarill92 answered 2 years ago

Exercise 16-15 Sheffield Inc. uses a calendar year for financial reporting. The company is authorized to...

Exercise 16-15 Sheffield Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,420,000 shares of $12 par common stock. At no time has Sheffield issued any potentially dilutive securities. Listed below is a summary of Sheffield’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 2,010,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2016 241,200 3. Shares issued for cash on March...

Exercise 16-15 Nash Inc. uses a calendar year for financial reporting. The company is authorized to...

Exercise 16-15 Nash Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,880,000 shares of $12 par common stock. At no time has Nash issued any potentially dilutive securities. Listed below is a summary of Nash’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,090,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2019 250,800 3. Shares issued for cash on March...

Exercise 16-15 Sarasota Inc. uses a calendar year for financial reporting. The company is authorized to...

Exercise 16-15 Sarasota Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,640,000 shares of $10 par common stock. At no time has Sarasota issued any potentially dilutive securities. Listed below is a summary of Sarasota’s common stock activities. 1.Number of common shares issued and outstanding at December 31, 2015 2,140,000 2.Shares issued as a result of a 10% stock dividend on September 30, 2016 214,000 3.Shares issued for cash on March 31, 2017 2,160,000...

15-11 Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 72,000 shares...

15-11 Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 72,000 shares of Silva Company directly from one of the founders for a price of $48 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $194,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $647,000 for the year. Ferguson uses the equity method in accounting for its investment...

On March 15, Calloway, Inc., paid property taxes of $500,000 for the calendar year. 17. Required...

On March 15, Calloway, Inc., paid property taxes of $500,000 for the calendar year. 17. Required information How much of this expense should Calloway’s income statement reflect for the quarter ending March 31? $0. $125,000. $41,667. $500,000. 18. Required information The journal entry at March 15 to record the payment of property taxes would include which of the following? A debit to Property Tax Expense of $500,000. A credit to Cash of $125,000. A credit to Prepaid Property Taxes of...

Buffalo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000...

Buffalo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $12 par common stock. At no time has Buffalo issued any potentially dilutive securities. Listed below is a summary of Buffalo’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2015 2,160,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2016 259,200 3. Shares issued for cash on March 31, 2017...

Flint Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000...

Flint Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $12 par common stock. At no time has Flint issued any potentially dilutive securities. Listed below is a summary of Flint’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 2,160,000 2. Shares issued as a result of a 12% stock dividend on September 30, 2019 259,200 3. Shares issued for cash on March 31, 2020...

Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000...

Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 £10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities. 1. Number of ordinary shares issued and outstanding at December 31, 2014 2,400,000 2. Shares issued as a result of a 10% share dividend on September 30, 2015 240,000 3. Shares issued for cash on March 31, 2016 2,000,000 Number...

Assume the Schwartz Inc is a public company with a calendar year end. Schwartz must determine...

Assume the Schwartz Inc is a public company with a calendar year end. Schwartz must determine when and how it will adopt the revised revenue standard. A. In what period must Schwartz firt apply ASC 606-10 B. How must the standard be initially applied (prospectively, retrospectively)? Explain. C. Could Schwartz early adopt if it chose to do so?

Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,610,000...

Marin Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,610,000 shares of $10 par common stock. At no time has Marin issued any potentially dilutive securities. Listed below is a summary of Marin’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2018 1,920,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2019 192,000 3. Shares issued for cash on March 31, 2020...

Question