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Aranda Corporation made the following cash purchases of securities during 2017, which is the first year in which Arantxa invested in securities. 1. On January 15, purchased 10,000 shares of Sanchez C...
See AnswerQ: The following are two independent situations. Situation 1: Conchita
The following are two independent situations. Situation 1: Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez Fashion at a total cost of $13 per share on March 18, 2017...
See AnswerQ: Jaycie Phelps Inc. acquired 20% of the outstanding common stock
Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid...
See AnswerQ: On July 10, 2017, Amodt Music sold CDs to retailers
On July 10, 2017, Amodt Music sold CDs to retailers on account and recorded sales revenue of $700,000 (cost $560,000). Amodt grants the right to return CDs that do not sell in 3 months following deliv...
See AnswerQ: Assume the same information as in E17-19 for Lilly Company
Assume the same information as in E17-19 for Lilly Company. In addition, assume that the investment in the Woods Inc. stock was sold during 2018 for $195,000. At December 31, 2018, the following infor...
See AnswerQ: Elaina Company has the following investments as of December 31, 2017
Elaina Company has the following investments as of December 31, 2017: Investments in common stock of Laser Company……………………$1,500,000 Investment in debt securities of FourSquare Company…………..$3,300,00...
See AnswerQ: On January 2, 2017, MacCloud Co. issued a 4
On January 2, 2017, MacCloud Co. issued a 4-year, $100,000 note at 6% fixed interest, interest payable semiannually. MacCloud now wants to change the note to a variable-rate note. As a result, on Jan...
See AnswerQ: On January 2, 2017, Parton Company issues a 5-
On January 2, 2017, Parton Company issues a 5-year, $10,000,000 note at LIBOR, with interest paid annually. The variable rate is reset at the end of each year. The LIBOR rate for the first year is 5.8...
See AnswerQ: Assume the same information as in E17-3 except that the
Assume the same information as in E17-3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. Instructions a. P...
See AnswerQ: The following information is available for Barkley Company at December 31,
The following information is available for Barkley Company at December 31, 2017, regarding its investments. Instructions a. Prepare the adjusting entry (if any) for 2017, assuming no balance in the...
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