Solution-Create necessary journal entries to record all

Create necessary journal entries to record all transactions

Assignment Help Cost Accounting

Reference no: EM133076566

Question - Mark's Marvelous Muffins Inc. (MMM) purchases an investment of 25,000 shares of Corey's Crusty Croissants Inc. (CCC). Their intent is to hold the investment for a temporary basis, likely less than one year.

A) MMM pays $90,000 or $9 per share and gets a 10% investment in CCC on Jan 1/20

B) On July 1/20 CCC pays dividends of $2.00 per share in cash.

C) As of Dec 31/20 MMM's year-end, the fair value of the shares of CCC is now $12.50 per share.

D) On Mar 15/21 MMM sells 1/2 of their shares (5,000 units) in CCC for $15 per share in exchange for cash.

Required -

1. What type of investment is this and how would it be classified on the balance sheet?

2. Create the necessary journal entries to record all of the above transactions, no descriptions are required.

Reference no: EM133076566

Questions Cloud

Compute the simple linear regression coefficients : A warehouse manager is examining the process distribution to find out the factors that affect warehouse distribution costs. Currently, a small handling fee is a

What was his total gross pay : He earns a salary of $800.00 per month, plus a commission of 5% on all sales over $10,000.00. What was his total gross pay

Definition of enterprise information system : Describe the definition of an enterprise information system. Discuss the use of technology in the organization.

Calculate the cost effectiveness ratio : An intervention has the following cost and benefit profile:

Create necessary journal entries to record all transactions : MMM pays $90,000 or $9 per share and gets a 10% investment in CCC on Jan 1/20. Create necessary journal entries to record all transactions

How to make working capital decision : Please choose 1 fintech (any fintech) and analyse them from Finance Manager's perspective:

Principles of information systems : What was the most useful takeaway for you from this workshop's reading? What concept from the reading is the most applicable to you now in your profession,

Estimate the company value : What happens if they get the 10% discount and what happen the year after

Estimate the firm cost of equity : -Betsy Co is working on maintaining a steady dividend payout ratio over the years. Each year, for the last several years, Betsy Co has paid out 30% of its net i

User Account

All Pages

Create necessary journal entries to record all transactions

Reference no: EM133076566

Reference no: EM133076566

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT