8. On May 15, 2025, Mayer Co. invests $8,000 in John, Inc. stock. John, Inc. pays Mayer Co. a $200 dividend on November 15, 2025. Mayer Co. sells the John, Inc. stock on December 10, 2025, for $7,500. Assume the Mayer Co. does not have significant influence over John, Inc. Journalize the 2025 transactions related to Mayer Co.'s investment in John, Inc. stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Mayer Co.'s initial investment in John, Inc. stock on May 15, 2025. Date May 15, 2025 Accounts and Explanation Debit Credit
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- On March 1, 2024, Garden Company invests $13,000 in Firs, Inc. stock. Firs pays Garden a $200 dividend on August 1, 2024. Garden sells the Firs' stock on August 31, 2024, for $13,350. Assume the investment is categorized as a short-term equity investment and Garden Company does not have significant influence over Firs, Inc 1. Journalize the transactions for Garden's investment in Firs' stock. 2. What was the net effect of the investment on Garden's net income for the year ended December 31, 2024Accounting for equity investments On January 1, 2018, Bark Company invests $10,000 in Roots, Inc. stock. Roots pays Bark a $400 dividend on August 1, 2018. Bark sells the Roots’s stock on August 31, 2018, for $10,450. Assume the investment is categorized as a short-term equity investment and Bark Company does not have significant influence over Roots, Inc. Requirements Journalize the transactions for Bark’s investment in Roots’s stock. What was the net effect of the investment on Bark’s net income for the year ended December 31, 2018?Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
- Accounting for equity investments On January 1, 2018, Bark Company invests $10,000 in Roots, Inc. stock. Roots pay Bark a $400 dividend on August 1, 2018. Bark sells the Roots’s stock on August 31, 2018, for $10,450. Assume the investment is categorized as a short-term equity investment and Bark Company does not have significant influence over Roots, Inc. Requirements Journalize the transactions for Bark’s investment in Roots’s stock. What was the net effect of the investment on Bark’s net income for the year ended December 31, 2018?On March 1, 2018, Rawlins Company invests $25,000 in Ashton Company stock. Ashton pays Rawlins a $800 dividend on September 30, 2018. Rawlins sells the Ashton stock on November 30, 2018 for $23,500. Assume the investment is categorized as a short-term equity investment and that Rawlins does not have significant influence over Ashton. Requirements: 1. Journalize the transactions for Rawlins' investment in Ashton's stock.On January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for P50,000 cash. A company accounts for the investment using the cost method. B's net income for 2021 is P20,000, but it declares no dividends. In 2022 B's net income is P80,000, and it declares dividends of P120,000. What is the correct balance of A's investment in B account at December 31, 2022?
- Current Attempt in Progress Following is a list of investments owned by Kingbird Ltd., as of the company's year-end, December 31, 2023: Investment HFX Corporation FDY Ltd. CTN Corporation Date Jan. 15, 2024 No. Shares Cost 1,300 $8.15 2,500 4,100 On January 15, 2024, Kingbird sold the shares in CTN Corporation for $7.14 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) FV-OCI Investments 7.26 6.23 Cash Account Titles and Explanation Unrealized Gain or Loss - OCI Fair Value $7.14 7.14 6.90 (To record adjustment to current fair value.) Retained Earnings FV-OCI Investments (To record the sale of shares.) Accumulated Other…3. STRANGE Inc. has the following transactions relating to investments during 2021: January 8 Acquired 10,000 shares of ANCIENT ONE Inc. for P 1,000,000 paying additional P 20,000 for brokerage and another P 5,000 for commission. February 29 Received dividends from ANCIENT ONE Inc. declared January 3, 2020 to the stockholder of record January 31, 2020, P 20,000. On December 31, 2021 and 2022, the market value per share of the ANCIENT ONE stock is Php 95 and Php 120, respectively. Required: Prepare journal entries for each of the transactions enumerated above for 2021 and 2022, assuming: a. Investment in equity securities - FVPL b. Investment in equity securities - FVOCIThe following information is available about Ayayai Corp.'s investments at December 31, 2023. This is the first year Ayayai has purchased securities for investment purposes. Securities 2,500 shares of Petra Corporation common shares 900 shares of Dugald Inc. preferred shares Ayayai follows IFRS. (a) Cost Account Titles and Explanation $25,000 18,000 $43,000 Fair Value $30,000 16,000 $46,000 Prepare the adjusting entry for December 31, 2023, assuming the investments are acquired for trading purposes and accounted for using the FV-NI model with no separate reporting of dividends and other types of FV-NI investment income and losses. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Debit Credit
- Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…thout making journal entries. this 4. Vaughn Company began operations in 2024. Since then, it has reported the following gains and losses for its equity investments on the income statement: 2024 2025 2026 Gains (losses) from sale of securities $14,100 $(20,900) $13,800 Unrealized holding losses on valuation of securities (25,100) Unrealized holding gain on valuation of securities At January 1, 2027, Vaughn owned the following securities: Cost BKD Common (16,000 shares @ $32) $512,000 LRF Preferred (2,400 shares @ $106) 254,400 10,400 (14,700)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 shares held by Chow was $35 million at December 31, 2021. KT did not declare or pay a dividend during 2021.Required:1. Prepare all appropriate journal entries related to the investment during 2021.2. Assume that Chow sold the stock on January 20, 2022, for $30 million. Prepare the journal entry Chow would use to record the sale.