Essay on Acc 557 Week 8 Homework Ch 12

685 Words Aug 11th, 2014 3 Pages
ACC 557 week 8 Homework CH 12 Exercise 12-7 (Part Level Submission) | |
On January 1, Vince Corporation purchased a 25% equity in Morelli Corporation for $180,000. At December 31, Morelli declared and paid a $60,000 cash dividend and reported net income of $200,000. (a) | |

| | Your answer is correct. | | |
Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) | |

| | Your answer is correct. | | |
Determine the amount to be reported as an investment in Morelli stock at December 31. Exercise 12-8 | |

| | Your answer is correct. | | |
Presented below are two independent situations. 1. | | Chicory
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Trading securities at fair value and 2. Non-trading securities at fair value. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Indicate the statement presentation of each class of securities. Zippydah Company
Balance Sheet
December 31, 2014 |

Indicate the related unrealized gain (loss) accounts. Zippydah Company
Income Statement (Detailed)
For the year ended December 31, 2014 | Problem 12-2A (Part Level Submission) | |
In January 2014, the management of Stefan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 | | Purchased 600 shares of Superior common stock for $31,800, plus brokerage fees of $600. | Mar. 1 | | Purchased 800 shares of Pawlik common stock for $20,000, plus brokerage fees of $400. | Apr. 1 | | Purchased 50 $1,000, 7% Venice bonds for $50,000, plus $1,000 brokerage fees. Interest is payable semiannually on April 1 and October 1. | July 1 | | Received a cash dividend of $0.60 per share on the Superior common stock. | Aug. 1 | | Sold 200 shares of Superior common stock at $58 per share less brokerage fees of $200. | Sept. 1 | | Received a $1 per share cash dividend on the Pawlik common stock. | Oct. 1 | | Received the semiannual interest on the Venice bonds. | Oct. 1 | | Sold the Venice bonds for $50,000 less $1,000

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