Business, 18.03.2021 01:20 teamzomaxx6584

During 2016, Stockman Company began investing in the common stock of other companies. Journalize the following activities using the appropriate account titles. For any accounts that would affect the income statement, indicate (I/S) next to the account title. 1. In January, Stockman purchased 4,000 shares of the outstanding stock of Edgar Company (this represented a 40% investment in Edgar Company) at a price of $18 per share.
2. In March, Stockman purchased 2,000 shares of the outstanding stock of Turner Company for $20 per share. This investment was classified as a Trading investment.
3. In March, Stockman purchased 2,000 shares of the outstanding stock of Turner Company for $20 per share. This investment was classified as a Trading investment.
4. In April, Edgar Company declared and paid a total cash dividend of $30,000 to its owners.
5. In May, Archer Company paid a $1 per share dividend to its owners.
6. On December 31, each of these companies reported net income to their owners in the following amounts:
Edgar, $80,000 net income
Archer, $50,000 net income
Turner, $100,000 net income
7. At December 31, the following per share amounts were reported for each of Stockman’s investments:
Edgar Company $25 per share
Archer Company $16 per share
Turner Company $18 per share
8. What is the total effect (note amount and direction) on net income from the previous journal entries?
$ increase or decrease?
9. What is the total effect (note amount and direction) on other comprehensive income from the previous journal entries?
$ increase or decrease?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 21:30

What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share

Answers: 1

Answer

Business, 22.06.2019 05:50

Cosmetic profits. sally is the executive vice president of big name cosmetics company. through important and material, nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. it is expected that stock in big name cosmetics will rise dramatically at that point. sally immediately buys a number of shares of her company's stock. she also tells her friend alice about the expected purchase of stores. alice wanted to purchase stock in the company but lacked the funds with which to do so. although she did not have the funds in bank a, alice decided to draw a check on bank a and deposit the check in bank b and then proceed to write a check on bank b to cover the purchase of the stock. she hoped that she would have sufficient funds to deposit before the check was presented for payment. of which of the following offenses, if any, is alice guilty of by buying stock?

Answers: 2

Answer

Business, 22.06.2019 13:30

Presented below is information for annie company for the month of march 2018. cost of goods sold $245,000 rent expense $ 36,000 freight-out 7,000 sales discounts 8,000 insurance expense 5,000 sales returns and allowances 11,000 salaries and wages expense 63,000 sales revenue 410,000 instructions prepare the income statement.

Answers: 2

Answer

Business, 22.06.2019 14:50

The following information is needed to reconcile the cash balance for gourmet catering services. * a deposit of $5,600 is in transit. * outstanding checks total $1,000. * the book balance is $6,400 at february 28, 2019. * the bookkeeper recorded a $1,800 check as $17,200 in payment of the current month's rent. * the bank balance at february 28, 2019 was $17,410. * a deposit of $400 was credited by the bank for $4,000. * a customer's check for $3,300 was returned for nonsufficient funds. * the bank service charge is $90. what was the adjusted book balance?

Answers: 1

Answer

You know the right answer?

During 2016, Stockman Company began investing in the common stock of other companies. Journalize the...

Questions