Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the followingmonths:2023Jan.. 6 Heritage paid $589,500 (including transaction fees of $50) for 51,400 shares (20%) of Port Inc. outstanding commonshares.Apr. 30 Port declared and paid a cash dividend of $1.50 per share.Dec. 31 Port announced that its profit for 2023 was $620,000. Fair value of the shares was $13.20 per share.2024Oct. 15 Port declared and paid a cash dividend of $1.10 per share.Dec.31 Port announced that its profit for 2024 was $770,000. Fair value of the shares was $13.58 per share..2025Jan. 5 Heritage sold all of its investment in Port for $696,000 cash.Assume that Heritage has a significant influence over Port with its 20% share.Required:1. Prepare the entries to record the preceding transactions in Heritage's books.View transaction listJournal entry worksheet<123Ets dabika kinon45Record the purchase in strategic investment.6 2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Roundyour answer to 2 decimal places.)Carrying value per share3. Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port.Equityby

The shares is the smallest unit of the company that shows the ownership of the company. A company…

Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the following months: 2023 Jan. Apr. Dec. 2024 Oct. Dec. 6 Heritage paid $589,500 (including transaction fees of $50) for 51,400 shares (20%) of Port Inc. outstanding common shares. 30 Port declared and paid a cash dividend of $1.50 per share. 31 Port announced that its profit for 2023 was $620,000. Fair value of the shares was $13.20 per share. 15 Port declared and paid a cash dividend of $1.10 per share. 31 Port announced that its profit for 2024 was $770,000. Fair value of the shares was $13.58 per share. Jan. 5 Heritage sold all of its investment in Port for $696,000 cash. 2025 Assume that Heritage has a significant influence over Port with its 20% share. Required: 1. Prepare the entries to record the preceding transactions in Heritage's books

Heritage Ltd. was organized on January 2, 2023. The following investment transactions and events occurred during the following months: 2023 Jan. Apr. Dec. 2024 Oct. Dec. 6 Heritage paid $589,500 (including transaction fees of $50) for 51,400 shares (20%) of Port Inc. outstanding common shares. 30 Port declared and paid a cash dividend of $1.50 per share. 31 Port announced that its profit for 2023 was $620,000. Fair value of the shares was $13.20 per share. 15 Port declared and paid a cash dividend of $1.10 per share. 31 Port announced that its profit for 2024 was $770,000. Fair value of the shares was $13.58 per share. Jan. 5 Heritage sold all of its investment in Port for $696,000 cash. 2025 Assume that Heritage has a significant influence over Port with its 20% share. Required: 1. Prepare the entries to record the preceding transactions in Heritage's books

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...

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On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a 30% corporate income tax rate. During 2019, Kittson earned net income of 67,000, and the following events occurred: 1. Cash dividends of 3 per share on 4,000 shares of common stock were declared and paid. 2. A small stock dividend was declared and issued. The dividend consisted of 600 shares of 10 par common stock. On the date of declaration, the market price of the companys common stock was 36 per share. 3. The company recalled and retired 500 shares of 100 par preferred stock. The call price was 125 per share; the stock had originally been issued for 110 per share. 4. The company discovered that it had erroneously recorded depreciation expense of 45,000 in 2018 for both financial reporting and income tax reporting. The correct depreciation for 2018 should have been 20,000. This is considered a material error. Required: 1. Prepare journal entries to record Items 1 through 4. 2. Prepare Kittsons statement of retained earnings for the year ended December 31, 2019.
Net Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.
2. Calculate the carrying value per share of Heritage's investment as reflected in the investment account on January 4, 2025. (Round your answer to 2 decimal places.) S Carrying value per share 3.Calculate the change in Heritage's equity from January 2, 2023, through January 5, 2025, resulting from its investment in Port. Equity 8.42 decreases by S 144.800
The following events are for Toronto Investment Inc.: 2023 Jan. 14 Purchased 18,520 shares of Quatro Inc. common shares for $169,900 (including transaction fees of $50). Quatro has 92,600 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto. Oct. 1 Quatro declared and paid a cash dividend of $3.90 per share. Dec. 31 Quatro announced that profit for the year amounted to $663,000. 2024 April 1 Quatro declared and paid a cash dividend of $4.00 per share. Dec. 31 Quatro announced that profit for the year amounted to $746,100. 31 Toronto sold 7,300 shares of Quatro for $110,820. Required: Prepare general journal entries to record each transaction. (Round per share calculations to 2 decimal places. Round your final answers to the nearest dollar.) View transaction list Journal entry worksheet < 1 2 3 4 Record the purchase of investment. Note: Enter debits before credits. Date Jan 14, 2023 5 General Journal 6 Debit Credit
The following events are for Toronto Investment Inc.: 2023 Jan. 14 Purchased 18,200 shares of Quatro Inc. common shares for $161,900 (including transaction fees of $50). Quatro has 91,000 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto. Oct. 1 Quatro declared and paid a cash dividend of $3.10 per share. Dec. 31 Quatro announced that profit for the year amounted to $655,000. 2024 April 1 Quatro declared and paid a cash dividend of $3.20 per share. Dec. 31 Quatro announced that profit for the year amounted to $738,100. 31 Toronto sold 6,500 shares of Quatro for $106,820. Required: Prepare general journal entries to record each transaction. (Round per share calculations to 2 decimal places. Round your final answers to the nearest dollar.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 Record the purchase of investment. Note: Enter debits before credits. Date Jan 14, 2023 Record entry General Journal Clear…
Gympa reported on its income statement a net income $647,000 for the year ended December 31 before considering the following: a. During the year, Gympa purchased trading securities b. At year-end , the fair value of the investment portfolio was $50,000 lesshan the cost c. The balance of Retained Earnings was $792,000 on January 1 d. Gympa paid $67,000 in cash dividends during the year. Using the above data, calculate the balance of Retained Earnings on Decemeber 31.
On March 20, 2018, Reeder Company acquired 40,000 shares of Needed Industries common stock at $64 per share as a long-term investment. Needed has 100,000 shares of outstanding voting common stock. The following additional information is presented for the calendar year ended December 31, 2018: Nov. 15 Reeder received a cash dividend of $3.00 per share from Needed Industries. Dec. 31 Needed announced earnings for the year of $250,000. Dec. 31 Needed Industries common stock had a closing market price of $56 per share. 2019: Jan. 6 Reeder sold a quarter of its shares of Needed Industries at a price of $70 per share. Required: 1. What accounting method should be used by Reeder Company to account for this investment? Why? 2. Prepare journal entries for the transactions and events described.
Instrument Corporation has the following investment which was held throughout 2021–2022. Assume the organization has invested in stock and holds 40%. Fair Value Cost 12/31/21 Equity investment $900,000 $1,200,000 A. Record the initial investment. B. Total dividends paid equal $400,000. Record the dividends. C. Total Net Income for the year equals $600,000. Record the income. D. If Instrument increased its investment to 55%, what would occur? Explain your answer.
Pineapple Co. reported total assets of P2,100,000 and total liabilities of P1,360,000 in its December 31, 2020 balance sheet. The following transactions occurred during 2021:• On August 1, Pineapple Co. issued an additional 10,000 ordinary shares at P25 per share• The company paid dividends totaling P160,000• Net income during the year was P220,000• Reacquired treasury shares of 4,000 at P30; subsequently reissued 2,000 shares for P39 per share• No other changes occurred in Stockholders’ Equity during the year.What is the balance of the Stockholders’ Equity section in its December 31, 2021 balance sheet?a) P800,000b) P1,008,000c) P1,050,000d) P1,370,000
On January 1, 2021, Eugene Co. had retained earnings of P1,240,000. During 2021, the co. earned net income of P456,000. The following transactions occurred:a. Cash dividends of P12 per share on 42,000 shares of ordinary shares were declared and paid.b. A small share dividend was declared and issued. The dividend consisted of 6,620 shares of P25 par ordinary share. On the date of declaration, the market price of the company’s ordinary share was P34 per share.c. The co. recalled and retired 12,100 shares of P50 par preferred share. The call price was P93 per share; the share had originally been issued for P80 per share. d. The Eugene discovered that it had erroneously recorded depreciation expense of P200,000 in 2019 for both financial and tax reporting. The correct depreciation for 2019 had been P275,000. This is considered a material error. Assume tax rate of 25%. The balance of retained earnings on December 31, 2021:
The following events are for Toronto Investment Inc.: 2020 Jan. 14 Purchased 18,200 shares of Quatro Inc. common shares for $161,900. Quatro has 91,000 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto. Oct. 1 Quatro declared and paid a cash dividend of $3.10 per share. Dec. 31 Quatro announced that profit for the year amounted to $655,000. 2021 April 1 Quatro declared and paid a cash dividend of $3.20 per share. Dec. 31 Quatro announced that profit for the year amounted to $738,100. 31 Toronto sold 6,500 shares of Quatro for $106,820. Prepare general journal entries for the following transactions: (Picture included as sample) 1. Record the collection of dividends (April 01, 2021) 2. Record the equity share of profits in investment (Dec 31, 2021) 3. Record the sale of investment (Dec 31, 2021)
The following events are for Toronto Investment Inc.: 2020 Jan. 14 Purchased 18,200 shares of Quatro Inc. common shares for $161,900. Quatro has 91,000 common shares outstanding and has acknowledged the fact that its policies will be significantly influenced by Toronto. Oct. 1 Quatro declared and paid a cash dividend of $3.10 per share. Dec. 31 Quatro announced that profit for the year amounted to $655,000. 2021 April 1 Quatro declared and paid a cash dividend of $3.20 per share. Dec. 31 Quatro announced that profit for the year amounted to $738,100. 31 Toronto sold 6,500 shares of Quatro for $106,820. Prepare general journal entries (Included Picture as sample) 1. Record the purchase of investment (Jan 14, 2020) 2. Record the collection of dividends (Oct 01, 2020) 3. Record the equity share of profits in investment (Dec 31, 2020)