Stefan Company Case 12-2

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 Cosmetics acquired 15% of the 200,000
…show more content…
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.

Related Documents