MC Qu. 144 On February 15, Jewel Company buys...

On February 15, Jewel Company buys 7,000 shares of Marcelo Corp. common stock at $28.53 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.15 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 $29.30 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:

Multiple Choice

-Debit Cash $8,050; credit Dividend Revenue $8,050.

-Debit Cash $8,050; credit Interest Revenue $8,050.

-Debit Cash $8,050; credit Gain on Sale of Investments $8,050.

-Debit Cash $7,350; credit Dividend Revenue $7,350.

-Debit Cash $7,350; credit Interest Revenue $7,350.

MC Qu. 98 A company has net income...

A company has net income of $575,000, net sales of $12,800,000, and average total assets of $6,842,500. Its return on total assets equals:

Multiple Choice

-53.5%.

-8.4%.

-17.9%.

-1,190.0%.

-4.5%.

MC Qu. 137 All of the following statements...

All of the following statements regarding accounting for trading securities under U.S. GAAP are true except:

Multiple Choice

-The entire portfolio of trading securities is reported at fair value.

-Any prior period fair value adjustment to the portfolio is not used to compute the gain or loss from sale of individual transactions.

-A realized gain or loss is recorded when the securities are sold and reported on the income statement.

-When the period-end fair value adjustment for the portfolio of trading securities is computed, it includes the cost and fair value of any securities sold.

-An unrealized gain or loss from a change in fair value is reported on the income statement.