Report As An Investment In Morelli Stock At December 31

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Register to read the introduction… Exercise 12-8 | |

| | Your answer is correct. | | |
Presented below are two independent situations. 1. | | Chicory Cosmetics acquired 15% of the 200,000 shares of common stock of Racine Fashion at a total cost of $13 per share on March 18, 2014. On June 30, Racine declared and paid a $60,000 dividend. On December 31, Racine reported net income of $122,000 for the year. At December 31, the market price of Racine Fashion was $15 per share. The stock is classified as non-trading. | 2. | | Frank, Inc., obtained significant influence over Nowak Corporation by buying 30% of Nowak’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2014. On June 15, Nowak declared and paid a cash dividend of $30,000. On December 31, Nowak reported a net income of $80,000 for the year. |

Prepare all the necessary journal entries for 2014 for (a) Chicory Cosmetics and (b) Frank, Inc. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Exercise 12-12 | |

| | Your answer is correct. | | |
Zippydah Company has the following data at December 31,
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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 brokerage fees.

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