Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016: Common stock—$25 par...
Kohler Corporation reports the following components of
stockholders’ equity on December 31, 2016: Common stock—$25 par
value, 100,000 shares authorized,50,000 shares issued and
outstanding$1,250,000Paid-in capital in excess of par value, common
stock 60,000Retained earnings 430,000Total stockholders'
equity$1,740,000
In year 2017, the following transactions affected its
stockholders’ equity accounts.
Jan. 1 Purchased 4,000 shares of its own stock at $20 cash per
share.
Jan. 5 Directors declared a $4 per share cash dividend payable
on February 28 to the February 5...
jan Purchased 500 shares of Velcon stock, paying $41 per share.
The investment represents 45% ownership...
jan Purchased 500 shares of Velcon stock, paying $41 per share.
The investment represents 45% ownership in Velcon's voting stock
and Know All has significant influence over Velcon. Know All
intends to hold the investment for the indefinite future. Aug. 22
Received a cash dividend of $0.76 per share on the Velcon stock.
Dec. 31 Velcon's current market value is $38 per share. 31 Velcon
reported net income of $350,000 for the year ended 2018.
Requirements 1. Journalize Know All's...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 520,000 shares for...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 520,000 shares for $600,000 at the
beginning of the fiscal year of both companies. On the purchase
date, the fair value and book value of AMC’s net assets were equal.
During the year, AMC earned net income of $370,000 and distributed
cash dividends of 25 cents per share. At year-end, the fair value
of the shares is $637,000. 2. Assume significant influence was
acquired. Prepare the appropriate...
Fuzzy Monkey Technologies, Inc., purchased as a short-term
investment $90 million of 6% bonds, dated January...
Fuzzy Monkey Technologies, Inc., purchased as a short-term
investment $90 million of 6% bonds, dated January 1, on January 1,
2018. Management intends to include the investment in a short-term,
active trading portfolio. For bonds of similar risk and maturity
the market yield was 8%. The price paid for the bonds was $73
million. Interest is received semiannually on June 30 and December
31. Due to changing market conditions, the fair value of the bonds
at December 31, 2018, was...
1. As a long-term investment, Painters'
Equipment Company purchased 20% of AMC Supplies Inc.'s 510,000
shares...
1. As a long-term investment, Painters'
Equipment Company purchased 20% of AMC Supplies Inc.'s 510,000
shares for $590,000 at the beginning of the fiscal year of both
companies. On the purchase date, the fair value and book value of
AMC’s net assets were equal. During the year, AMC earned net income
of $360,000 and distributed cash dividends of 30 cents per share.
At year-end, the fair value of the shares is $626,000.
Assume significant influence was acquired. Prepare the
appropriate...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 480,000 shares for...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 480,000 shares for $560,000 at the
beginning of the fiscal year of both companies. On the purchase
date, the fair value and book value of AMC’s net assets were equal.
During the year, AMC earned net income of $330,000 and distributed
cash dividends of 25 cents per share. At year-end, the fair value
of the shares is $593,000.
1. Assume no significant influence was
acquired. Prepare the...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 440,000 shares for...
As a long-term investment, Painters' Equipment Company purchased
20% of AMC Supplies Inc.'s 440,000 shares for $520,000 at the
beginning of the fiscal year of both companies. On the purchase
date, the fair value and book value of AMC’s net assets were equal.
During the year, AMC earned net income of $290,000 and distributed
cash dividends of 20 cents per share. At year-end, the fair value
of the shares is $549,000.
Required:
1. Assume no significant influence was acquired.
Prepare...
Hart Corporation purchased 350,000 shares of the outstanding
common voting stock of Gotti Corporation on January...
Hart Corporation purchased 350,000 shares of the outstanding
common voting stock of Gotti Corporation on January 2, 2021, at a
cash cost of $8.00 per share as a short-term investment. At the
date of purchase Gotti Corporation had outstanding 1,000,000 shares
of common stock (par $1). At year end, December 31, 2021, Gotti
reported net income of $200,000 and declared and paid a $50,000
cash dividend. The December 31, 2021, the market value of Gotti's
stock was $7.50. Give the...
Hart Corporation purchased 350,000 shares of the outstanding
common voting stock of Gotti Corporation on January...
Hart Corporation purchased 350,000 shares of the outstanding
common voting stock of Gotti Corporation on January 2, 2021, at a
cash cost of $8.00 per share as a short-term investment. At the
date of purchase Gotti Corporation had outstanding 1,000,000 shares
of common stock (par $1). At year end, December 31, 2021, Gotti
reported net income of $200,000 and declared and paid a $50,000
cash dividend. The December 31, 2021, the market value of Gotti's
stock was $7.50. Give the...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...