70.2K

Verified Solution

Link Copied!

6 Micron owns 35% of Manok Martok pays atotal of S47.000 in cash dividends for the period Micron's entry to record the dividend transaction would include a Debit to Long-Term Investments for $16.450 8 Credit to Long-Term Investments for $16.450 C Debit to Cash for $47 000 D Credit to Cash for $16.450 E Credit to Investment Revenue for $47.000 7 On January4 Yeart, Larsen Company purchased 5,000 shares of Warner Company for $59 500 plus a broker's fee of $1.000 Warmer Company has a total of 25,000 shares of common stock outstanding and it s presumed the Larsen Company will have a significant influence over Wamer During each of the next two years. Warner declared and paid cash dividends of $0 85 per share and its net income was $72.000 and $87,000 for Year 1 and Year 2, respectively The January 12 ear 3 entry to record the sale of 3.000 shares of Wamer Company stock for $39.000 cash should be A Debit Cash 539 000 debit Loss on Sale of Investment $8.880 credit Long-Term Investments $47,880 8 Debit Cash 539 000, debit Loss on Sale of Investment $8.200, credit Long-Term Investments $47,280 C Diet Cash $39 0000edt Gartn Sae or Invest ent S270. credit Long-Term Investments S36 300 Debit Cash 539 000 credit Gain on Sale of Investment $8 750 credit Long-Term Investments $30,250 E Debit Cash 39 000 debit Loss on Sale of Investment $21.500 credit Long-Term Investments $60 500 ARecorded atc Recorded at the amount of interest that will be pad over the ife of the security C Recorded at their cost plus total interest that will be paid over the life of the security D Not recorded because no interest in due yet Recorded at cost plus the amount of dividend income to be receved Purchased 2.000 shares of SANDY Inc common stock for $100 000 cash These shares represent 10% of Packards outstandng shares the enti" any) to record when SANDY recognizes $35,000 net income? A Debit cash for $6 650 B Debit Accounts Receivable for $6.650 C Debit Long-term investment in SANDY for $6 650 D Debit Long-term Investment in SANDY for $19.000 E None of the above Clark Corporation purchased 40% of IT Corporation for $125000 on January 10 May 20 of the same year, IT Corporation declared total cash dividends of $30.000 At year-end IT Corporation reported net income of $150.000 The balance in Clark Corporation's Long-Term Investment 10 IT Corporation account as of December 31 should be A $77.000 B $125,000 $173 000 D $197.000 $370.000 E 11. On July 31, Beatrce Co purchased 2.000 shares of SimmTech stock for $16,000. The investment is classified as available-for-sale securities On October 31, which is Beatrice's year-end, the stock the stock had a fair value of $20,000 Beatrice should record a A Credit to Unrealized Gain-Equity for $4,000 B Credit to Market Adjustment-Available-for-Sale for $4,000 C Credit to Investment Revenue for $4,000 D. Debit to Investment Revenue for $4,000 E Debit to Unrealized Gain-Equity for $4,000 6 Micron owns 35% of Manok Martok pays atotal of S47.000 in cash dividends for the period Micron's entry to record the dividend transaction would include a Debit to Long-Term Investments for $16.450 8 Credit to Long-Term Investments for $16.450 C Debit to Cash for $47 000 D Credit to Cash for $16.450 E Credit to Investment Revenue for $47.000 7 On January4 Yeart, Larsen Company purchased 5,000 shares of Warner Company for $59 500 plus a broker's fee of $1.000 Warmer Company has a total of 25,000 shares of common stock outstanding and it s presumed the Larsen Company will have a significant influence over Wamer During each of the next two years. Warner declared and paid cash dividends of $0 85 per share and its net income was $72.000 and $87,000 for Year 1 and Year 2, respectively The January 12 ear 3 entry to record the sale of 3.000 shares of Wamer Company stock for $39.000 cash should be A Debit Cash 539 000 debit Loss on Sale of Investment $8.880 credit Long-Term Investments $47,880 8 Debit Cash 539 000, debit Loss on Sale of Investment $8.200, credit Long-Term Investments $47,280 C Diet Cash $39 0000edt Gartn Sae or Invest ent S270. credit Long-Term Investments S36 300 Debit Cash 539 000 credit Gain on Sale of Investment $8 750 credit Long-Term Investments $30,250 E Debit Cash 39 000 debit Loss on Sale of Investment $21.500 credit Long-Term Investments $60 500 ARecorded atc Recorded at the amount of interest that will be pad over the ife of the security C Recorded at their cost plus total interest that will be paid over the life of the security D Not recorded because no interest in due yet Recorded at cost plus the amount of dividend income to be receved Purchased 2.000 shares of SANDY Inc common stock for $100 000 cash These shares represent 10% of Packards outstandng shares the enti" any) to record when SANDY recognizes $35,000 net income? A Debit cash for $6 650 B Debit Accounts Receivable for $6.650 C Debit Long-term investment in SANDY for $6 650 D Debit Long-term Investment in SANDY for $19.000 E None of the above Clark Corporation purchased 40% of IT Corporation for $125000 on January 10 May 20 of the same year, IT Corporation declared total cash dividends of $30.000 At year-end IT Corporation reported net income of $150.000 The balance in Clark Corporation's Long-Term Investment 10 IT Corporation account as of December 31 should be A $77.000 B $125,000 $173 000 D $197.000 $370.000 E 11. On July 31, Beatrce Co purchased 2.000 shares of SimmTech stock for $16,000. The investment is classified as available-for-sale securities On October 31, which is Beatrice's year-end, the stock the stock had a fair value of $20,000 Beatrice should record a A Credit to Unrealized Gain-Equity for $4,000 B Credit to Market Adjustment-Available-for-Sale for $4,000 C Credit to Investment Revenue for $4,000 D. Debit to Investment Revenue for $4,000 E Debit to Unrealized Gain-Equity for $4,000

Answer & Explanation Solved by verified expert

See Answer