Awaiting product image

Principles of Accounting 2 (BU 3511): Spring 2013

$16.00

Category: Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Description

ix months ago, a company purchased an investment in stock for $72,000. The investment is classified as available-for-sale securities. The current fair value of the stock is $76,200. The company should record a:

Debit to Investment Revenue for $4,200.
Credit to Investment Revenue for $4,200.
Credit to Unrealized Gain-Equity for $4,200.
Credit to Market Adjustment – Available-for-Sale for $4,200.

Debit to Unrealized Loss-Equity for $4,200.

On February 15, Seacroft buys 6,500 shares of Kebo common stock at $ 28.68 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.20 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 25 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.45 per share less a brokerage fee of $250. The journal entry to record the dividend on April 25 is:
Debit Cash $7,800; credit Gain on Sale of Investments $7,800.
Debit Cash $7,800; credit Interest Revenue $7,800.
Debit Cash $7,800; credit Dividend Revenue $7,800.
Debit Cash $6,911; credit Dividend Revenue $6,911.

Debit Cash $6,911; credit Interest Revenue $6,911.

A company owns 9% bonds with a par value of $100,000 that pay interest on October 1 and April 1. The amount of interest accrued on December 31 (the company’s year-end) would be (Do not round your intermediate calculations):
$750.
$2,250.
$4,500.
$9,000.

$1,500.

On February 15, Seacroft buys 7,200 shares of Kebo common at $28.55 per share plus a brokerage fee of $410. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.17 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 25 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.32 per share less a brokerage fee of $260 . The fair value of the remaining shares is $29.52 per share. The amount that Seacroft should report in the equity section of its year-end December 31 balance sheet for its investment in Kebo is (Round your intermediate and final dollar values to the nearest dollar amount):
$3,287.
$2,307.
$6,574.
$10,731.

$8,424.

On February 15, Seacroft buys 6,000 shares of Kebo common at $28.73 per share plus a brokerage fee of $495. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.25 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 25 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.50 per share less a brokerage fee of $350. The fair value of the remaining shares if $29.70 per share. The amount that Seacroft should report in the asset section of its year-end December 31 balance sheet for its investment in Kebo is:
$1,712.
$5,610.
$89,100.
$172,875.

$2,662.

On February 15, Seacroft buys 6,400 shares of Kebo common stock at $28.69 per share plus a brokerage fee of $475. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.21 per share payable to stockholders of record on April 15. Seacroft received the dividend on April 25 and ultimately sells half of the Kebo stock on November 17 of the current year for $29.46 per share less a brokerage fee of $330. The fair value of the remaining shares is $29.66 per share. The amount that Seacroft should report on its year-end December 31 income statement related to the investment in Kebo is (Round your intermediate and final dollar values to the nearest dollar amount):
$2,866.
$9,640.
$1,896.
$5,610.
$7,744.

Reviews

There are no reviews yet.

Be the first to review “Principles of Accounting 2 (BU 3511): Spring 2013”

Your email address will not be published.

Related products