Homework Sourse143 Reporting investments at fair value is A a conservative
143.) Reporting investments at fair value is?
A.)
a conservative approach because only losses are recognized.
B.) applicable to both debt and equity securities.
C.) applicable to equity securities only.
D.) applicable to debt securities only.
Wildhorse Co. had these transactions pertaining to stock investments
93.) Wildhorse Co. had these transactions pertaining to stock investments
Purchased 6000 shares of Raley Company (10%) for $107400 cash.
Oct. 1
The entry to record the receipt of the dividends Dec. 1 would include a?
A.)
credit to the Stock Investments of $6800.
B.) debit to Stock Investments of $6800.
C.)credit to Dividend Revenue of $6800.
D.)
Debit to Dividend Revenue of $6800.
127.) Assume that Indigo Corp. acquires 35% of Monty Corp. for $360000 on January 1, 2017. If Monty declares and pays $160000 in total dividends on February 14th, the journal entry would include a credit to?
A.)
Stock Investments for $56000.
B.)
Dividend Revenue for $160000.
C.)No entry is necessary.
D.)Dividend Revenue for $56000.
| A.) | a conservative approach because only losses are recognized. |
Solution
143) Ans:Option B
applicable to both debt and stock / equity securities.
144)
The entry to record the receipt of the dividends Dec. 1 would include a?
Cash 6800
Dividend Revenue 6800
(6000-2600)*2
C.)credit to Dividend Revenue of $6800
127) Option A
Stock Investments for $56000.
160000*35%
