Q: Colah Company purchased $1 million of Jackson, Inc., 5
Colah Company purchased $1 million of Jackson, Inc., 5% bonds at par on July 1, 2021, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale i...
See AnswerQ: On February 18, 2021, Union Corporation purchased 600 IBM bonds
On February 18, 2021, Union Corporation purchased 600 IBM bonds as a long-term investment at their face value for a total of $600,000. Union will hold the bonds indefinitely, and may sell them if thei...
See AnswerQ: At December 31, 2021, Hull-Meyers Corp. had
At December 31, 2021, Hull-Meyers Corp. had the following investments that were purchased during 2021, its first year of operations: No investments were sold during 2021. All securities except Securit...
See AnswerQ: On March 31, 2021, Chow Brothers, Inc., bought
On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50 million. KT’s net income for the year ended December 31, 2021, was $80 million. The fair value of the sha...
See AnswerQ: On January 2, 2021, Sanborn Tobacco Inc. bought 5
On January 2, 2021, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $90 million. Jackson Industry’s net income for the year ended December 31, 2021, was $120 million. The fair v...
See AnswerQ: The accounting records of Jamaican Importers, Inc., at January 1
The accounting records of Jamaican Importers, Inc., at January 1, 2021, included the following: No changes occurred during 2021 in the investment portfolio. Required: Prepare appropriate adjusting ent...
See AnswerQ: The investments of Harlon Enterprises included the following cost and fair value
The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Harlon accounts for its equity investment portfolio at fair value through net income. Harlon s...
See AnswerQ: On December 28, 2021, Videotech Corporation (VTC) purchased
On December 28, 2021, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the...
See AnswerQ: Mills Corporation acquired as a long-term investment $240 million
Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. T...
See AnswerQ: As a long-term investment at the beginning of the 2021
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.’s 8 million shares for $56 million. The fair value and book value of t...
See Answer
