Question

Yes Men, Inc. purchased 10,000 common shares of No Men Corp. common stock at $10 per...

Yes Men, Inc. purchased 10,000 common shares of No Men Corp. common stock at $10 per share on January 1, 2017 with cash. The security pays a $2.00 per share cash dividend at the end of each year. At December 31, 2017, the shares had a fair value of $12 per share and at the end of 2018 the shares had a fair value of $8 per share.

Required:

1. Prepare the journal entries to record the purchase of the shares and the receipt of the dividends received at the end of 2017 and 2018.

2. Assume Yes Men sold half of the shares for $9 per share on June 15, 2019. Prepare the journal entry to record the sale of the shares assuming the shares were accounted for as a trading security, and as an available-for-sale security.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Skysong Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31,...
Skysong Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $699,000 for 2018. The fair value of Kulikowski’s stock was $27 per share at December 31, 2018. Assume that the security is a trading security. Instructions (a)   Prepare the journal entries...
On January 1, Bramble Corp. had 63,400 shares of no-par common stock issued and outstanding. The...
On January 1, Bramble Corp. had 63,400 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. 1 Issued 20,250 additional shares of common stock for $12 per share. June 15 Declared a cash dividend of $1.60 per share to stockholders of record on June 30. July 10 Paid the $1.60 cash dividend. Dec. 1 Issued 9,000 additional shares of common stock for $13...
On February 15, Jewel Company buys 8,600 shares of Marcelo Corp. common stock at $29.33 per...
On February 15, Jewel Company buys 8,600 shares of Marcelo Corp. common stock at $29.33 per share plus a brokerage fee of $480. The stock is classified as available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.55 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 $30.10 per share less a...
On January 1, Grouper Corp. had 61,600 shares of no-par common stock issued and outstanding. The...
On January 1, Grouper Corp. had 61,600 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. 1 Issued 12,150 additional shares of common stock for $13 per share. June 15 Declared a cash dividend of $1.65 per share to stockholders of record on June 30. July 10 Paid the $1.65 cash dividend. Dec. 1 Issued 5,400 additional shares of common stock for $13...
2016 Jan. 15 Purchased 15,000 shares of Park, Inc.’s common stock at $10 per share plus...
2016 Jan. 15 Purchased 15,000 shares of Park, Inc.’s common stock at $10 per share plus a brokerage commission of $1,000. These shares represent a 25 percent ownership of the Park common stock. Dec. 31 Received a cash dividend of $2.80 per share of common stock from Park. Dec. 31 Made the adjusting entry to reflect income from the Park stock investment. Park’s 2016 net income is $124,000. 2017 Jan. 20 Sold all 15,000 shares of the Park common stock...
Dan Corp. issued 5,000 shares of common stock at a stated value of $10 per share,...
Dan Corp. issued 5,000 shares of common stock at a stated value of $10 per share, where stock was sold for $15 per share. The journal entry to record this transaction would include: * Debit to Cash for $75,000 Credit to Common Stock for $150,000 Debit Paid-in Capital in Excess of Par Value for $25,000 Credit to Common Stock for $75,000
10- ZIP Company owns 37,000 shares of the common stock of PIK Company. ZIP decided to...
10- ZIP Company owns 37,000 shares of the common stock of PIK Company. ZIP decided to divest itself of this investment by distributing the PIK shares in the form of a property dividend. The dividend ratio is one share of PIK for every four shares of ZIP common held by shareholders. ZIP has 148,000 common shares outstanding. On April 15, 2018, the date of declaration, PIK stock had a par of $5 per share, a book value of $11.7 per...
On February 15, Jewel Company buys 8,600 shares of Marcelo Corp. common stock at $29.33 per...
On February 15, Jewel Company buys 8,600 shares of Marcelo Corp. common stock at $29.33 per share. The stock is classified as a stock investment with insignificant influence. This is the company’s first and only stock investment. On March 15, Marcelo Corp. declares a dividend of $1.55 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...
1.On 5/2/17, Anna Company purchased $100,000 of the 9%, 10-year bonds of Dexter Corporation for $106,247,...
1.On 5/2/17, Anna Company purchased $100,000 of the 9%, 10-year bonds of Dexter Corporation for $106,247, which provides an 8% return on annual interest payments made every 5/1.  Anna does not intend to hold the bonds until maturity, but will hold them for longer than a year.  The market value of the bonds at 12/31/17 is $106,100 and at 12/31/18 is $106,000.  On 3/1/19, Anna sells the bonds for $105,950.  What journal entries will Anna make in 2017 and 2018 to appropriately record these...
On January 1, Ayayai Corp. had 61,000 shares of no-par common stock issued and outstanding. The...
On January 1, Ayayai Corp. had 61,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. 1 Issued 9,450 additional shares of common stock for $11 per share. June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30. July 10 Paid the $1.50 cash dividend. Dec. 1 Issued 4,200 additional shares of common stock for $11...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT