1/ On February 15, Jewel Company buys 7,100 shares of Marcelo Corp. common stock at $28.54...

1/ On February 15, Jewel Company buys 7,100 shares of Marcelo Corp. common stock at $28.54 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.16 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.31 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:

Multiple Choice

Debit Cash $7,511; credit Dividend Revenue $7,511.

Debit Cash $8,236; credit Dividend Revenue $8,236.

Debit Cash $8,236; credit Interest Revenue $8,236.

Debit Cash $7,511; credit Interest Revenue $7,511.

Debit Cash $8,236; credit Gain on Sale of Investments $8,236.

2/ On January 4, Year 1, Barber Company purchased 5,500 shares of Convell Company for $64,500 plus a broker's fee of $1,100. Convell Company has a total of 27,500 shares of common stock outstanding and it is presumed the Barber Company will have a significant influence over Convell. During each of the next two years, Convell declared and paid cash dividends of $0.85 per share, and its net income was $77,000 and $72,000 for Year 1 and Year 2, respectively. What is the book value of Barber's investment in Convell at the end of Year 2?

Multiple Choice

$65,600.

$86,050.

$56,250.

$95,400.

$94,400.

Expert Solution

ekkarill92 answered 9 months ago

32. On February 15, Jewel Company buys 7,600 shares of Marcelo Corp. common stock at $28.59...

32. On February 15, Jewel Company buys 7,600 shares of Marcelo Corp. common stock at $28.59 per share plus a brokerage fee of $425. The stock is classified as available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.21 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on...

On February 1, Rinehart Company purchased 700 shares (2% ownership) of Givens Company common stock for...

On February 1, Rinehart Company purchased 700 shares (2% ownership) of Givens Company common stock for $32 per share. On March 20, Rinehart Company sold 140 shares of Givens stock for $4,060. Rinehart received a dividend of $2.00 per share on April 25. On June 15, Rinehart sold 280 shares of Givens stock for $10,640. On July 28, Rinehart received a dividend of $3.00 per share. Prepare the journal entries to record the transactions described above. (Credit account titles are...

1. John buys shares of stock in Acme Corp. on January 1, 2018 for $50. He...

1. John buys shares of stock in Acme Corp. on January 1, 2018 for $50. He gifts the stock to Mary on July 1, 2018 when the stock has a fair market value (fmv) of $60. Mary sells the stock on September 1 , 2018 for $80. a. What is the gain /loss recognized by John? ______________ What is the character of the gain/loss? _____________ b. What is the gain /loss recognized by Mary? ______________ What...

Harris Pilton has 150,000 shares of common stock outstanding on January 1. On February 1, the...

Harris Pilton has 150,000 shares of common stock outstanding on January 1. On February 1, the company issued 50,000 additional shares for $50.00 each. On April 30, the company repurchased 5,000 treasury shares. On June 1, the company made a 4-for-3 bonus issue. On August 1, the company issued 1,000 new shares of common stock for $45.00 each. On September 30th, the company issued a 15% stock dividend. Harris Pilton has 2,000 shares of 5%, $10 par, noncumulative, nonconvertible preferred...

4. John buys shares of stock in Acme Corp. on January 1, 2018 for $50. John...

4. John buys shares of stock in Acme Corp. on January 1, 2018 for $50. John dies July 1, 2018 when the stock has a fmv of $60. Mary inherits the stock from John’s estate. Mary sells the stock on September 1, 2018 for $80. a. What is the gain /loss recognized by John’s estate? ______________ What is the character of the gain/loss? _____________ b. What is the gain /loss recognized by Mary? ______________ What...

On January 1, 2008 SSS buys 500 shares of Co common stock for $50/share for the...

On January 1, 2008 SSS buys 500 shares of Co common stock for $50/share for the stock portfolio as short-term investment. SSS’s purchase represents 1% of outstanding Co stock and the company exerts no influence on Co. Journalize the purchase by SSS. On February 1 Co pays a $1/share dividend. Journalize SSS’s receipt of the dividend. On Feb 15, Co reports $1mm net income. What JE does the company make, if any, to recognize the income? On March 1 SSS...

1 Corp X is authorized to issue 1,000,000 shares of Common Stock Par $1 No Entry...

1 Corp X is authorized to issue 1,000,000 shares of Common Stock Par $1 No Entry since it was just authorized but not issued. 2 Corporation X issued 500,000 shares of Common Stock Par $1 for $ 8 per share 3 Corporation X issued 1,500,000 shares of Common Stock Par $1 for $10 per share 4 Corporation X reacquired 1,000,000 shares of their Common Stock Par $1 for $ 2 5 Sold 500,000 shares of treasury stock at $8 per...

Promising Corp starts the year with 25,000 shares of $1 par common stock issued at an...

Promising Corp starts the year with 25,000 shares of $1 par common stock issued at an average cost of $24 each. Record each of the following sequential entries.1.) Repurchase 2,000 shares for $18 each; 2.) Sell 1,000 of the shares in #1 for $26 each; 3.) Sell 800 shares of the stock repurchased in #1 for $9 each; 4.) Retire the remaining 200 shares repurchased in #1. After the 4th entry, how many shares are issued? Outstanding?

1) a) You are considering acquiring shares of common stock in the Madison Beer Corp. Your...

1) a) You are considering acquiring shares of common stock in the Madison Beer Corp. Your rate of return expectations are as follows: Possible rate of return Possibility -0.1 0.3 0.00 0.1 0.1 0.3 0.25 0.3 Compute the expected return on your investment b) You are considering acquiring shares of common stock in the Lauren computer Corp. Your rate of return expectations are as follows: Possible rate...

On January 1, 2016, A Corp. issued shares of its common stock to acquire all of...

On January 1, 2016, A Corp. issued shares of its common stock to acquire all of the outstanding common stock of B Inc. B’s book value was only $140,000 at the time, but A issued 12,000 shares having a par value of $1 per share and a fair value of $20 per share. A was willing to convey these shares because it felt that buildings (ten-year life) were undervalued on B's records by $60,000 while equipment (five-year life) was undervalued...

Question