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Audrey should report the investment in Off Company

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Audrey should report the investment in Off Company 1. On August 1, Mistery Company buys 2,000 shares of ABC common stock for $70,000 cash plus brokerage fees of $2,200. On December 1, the stock investments are sold for $76,000 in cash. Which of the following are the correct journal entries to record for the purchase and sale of the common stock? a. Aug. 1 Cash 72,200 Stock Investments 72,200 Dec. 1 Cash 76,000 Stock Investments 72,200 Gain on Sale of Stock Investments 3,800 b. Aug. 1 Stock Investments 72,200 Cash 72,200 Dec. 1 Cash 76,000 Stock Investments 72,200 Gain on Sale of Stock Investments 3,800 c. Aug. 1 Stock Investments 72,200 Cash 72,200 Dec. 1 Stock Investments 76,000 Cash 72,200 Gain on Sale of Stock Investments 3,800 d. Aug. 1 Cash 72,200 Stock Investments 72,200 Dec. 1 Stock Investments 76,000 Cash 72,200 Gain on Sale of Stock Investments 3,800 2. Laramie industries owns 45% of McCook Company. For the current year, McCook reports net income of $250,000 and declares and pays a $60,000 cash dividend. Which of the following correctly presents the journal entries to record Laramie’s equity in McCook’s net income and the receipt of dividends from McCook? a. Dec. 31 Stock Investments 112,500 Revenue from Stock Investments …. 112,500 Dec. 31 Cash 27,000 Stock Investments 27,000 b. Dec. 31 Stock Investments 112,500 Revenue from Stock Investments …. 112,500 Dec. 31 Cash 60,000 Stock Investments 60,000 c. Dec. 31 Stock Investments 85,500 Revenue from Stock Investments … 85,500 d. Dec. 31 Revenue from Stock Investments ………. 112,500 Stock Investments 112,500 Dec. 31 Stock Investments 27,000 Cash 27,000 3. On January 1, 2013, Audrey Corp. paid $800,000 for 100,000 shares of Off Company’s common stock, which represents 40% of Off’s outstanding common stock. Off reported net income of $200,000 and paid cash dividends of $60,000 during 2013. Audrey should report the investment in Off Company on its December 31, 2013, balance sheet at: a. $800,000 b. $744,000 c. $824,000 d. $856,000 4. Mission Inc. earns $600,000 and pays cash dividends of $150,000 during 2013. Cox Corporation owns 70,000 of the 210,000 outstanding shares of Mission. What amount should Cox show in the investment account at December 31, 2013 if the beginning of the year balance in the account was $40,000? a. $190,000 b. $200,000 c. $175,000 d. $180,000 5. Mission Inc. earns $450,000 and pays cash dividends of $150,000 during 2013. Cox Corporation owns 70,000 of the 210,000 outstanding shares of Mission. How much revenue from investment should Cox report in 2013? a. $50,000 b. $100,000 c. $150,000 d. $200,000 Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

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