Calculation of cost of common stock shares

Reference no: EM1310863

Calculation of cost of common stock shares.

On Jan 4, 2007 Larsen Co purchased 5,000 shares of Warner Co for 59,500 plus a broker's fee of $1000. Warner Company has a total of 25,000 shares of common stock outstanding and it is presumed the Larsen Co will have significant influence over Warner. During each of the next two years, Warner declared and paid cash dividends of $0.85 per share and its net income was 72,000 and 67,000 for 2007 and 2008 respectively. The Jan 12, 2009 entry to record the sale of 3,000 shares of Warner Company stock for 39,000 cash should be:

Reference no: EM1310863

Questions Cloud

Preparing the bank reconciliation statement : Preparing the bank Reconciliation Statement and Prepare bank reconciliation as of 31 Oct from the following

Calculation of project ocf : Calculation of Project OCF and Project NPV and Project Cash Flow from Assets and Modified ACRS. and What is the project's year 0 net cash flow

Journal entries for prepaid expenses- insurance : Prepaid expenses- insurance - Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of 3,000 on March 1.

How is forward exchange contract reported : On December 31, Year One, the Haynie Company is producing financial statements. How is this forward exchange contract reported?

Calculation of cost of common stock shares : Calculation of cost of common stock shares and shares of common stock outstanding and it is presumed the Larsen Co

Capital stock of a danish subsidiary : Bowman Company reported translation adjustments in its stockholders' equity section of $2,000,000. Such adjustments were added to the other items disclosed in Bowman's stockholders' equity.

Cost flow assumptions : Cost flow assumptions - FIFO and LIFO using a periodic system. Mower Blowers coy started business on Jan 20, 2009. Products sold were snow blowers and lawn mowers. Each product sold for $350

Consolidated financial statements : According to US GAAP, what should be the basis for reporting the assets and liabilities of Small within consolidated financial statements created on the date of acquisition?

Computation of unamortised bond premium : Computation of unamortised bond premium, Gain and Loss on bond retirement and Prepare the journal entry to record the retirement of these bonds

User Account

All Pages