Reference no: EM132631235
Questions -
Q1. On January 2, 2018, All Good Company purchased 7,000 shares of the stock of Big Bad Company, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $11 per share, and represents a. 30% ownership stake. Big Bad Company made $600,000 of net income in 2018, and paid dividends to All Good Company of $20,000 on December 15, 2018. Big Bad Company's stock was trading on the open market for $12 per share at the end of the year. Use this information to determine the book value of the investment that should be reported at year end by All Good Company.
Q2. The following are selected accounts for the Daniel Company after all Fiscal Year December 31, 2018, adjusting entries & closing entries have been posted. All balances are normal.
Account Amount
Common Stock, $10 par $260,000
Treasury Stock, at cost $16 per share $32,000
Dividends Payable $13,000
Paid in Capital in excess of par, common stock $52,000
Accounts Receivable $24,500
Retained Earnings $217,000
Bonds Payable $150,000
Preferred Stock, $100 par, 4% cumulative $100,000
Required - Prepare the stockholders equity section of the classified balance sheet for the year ends.