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 1 year 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...

A) Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 50,000 shares...

A) Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 50,000 shares of Silva Company directly from one of the founders for a price of $46 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $135,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $459,000 for the year. Ferguson uses the equity method in accounting for its investment...

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?

Question