On january 10 2010 shore company purchased a block of these

Reference no: EM13599078

Ship corporation had outstanding 100,000 shares of no-par common stock. On January 10, 2010 Shore Company purchased a block of these shares in the open market at $20 per share for long-term investment purchases. At the end of 2010, Ship reported net income of $400,000 and cash dividends of $1.60 per share. At December 31, 2010 Ship's stock was selling at $18 per share.

Case A: Purchase of 10,000 shares of Ship common stock.

Case B: Purchase of 40,000 shares of Ship common stock.

b. For each case, identify the journal entries for each of the following: Acquisitiion, revenue recognition, dividends receieved, market value effects

c.For each case, show how the following should be reported on the 2010 financial statements: long-term investments, Owner's equity, revenues.

d. Explain why the amounts reported for the two cases in (c) differ.

Reference no: EM13599078

Questions Cloud

For nearly 20 years custom coatings has provided painting : for nearly 20 years custom coatings has provided painting and galvanizing services for manufacturers in its region.

Mizzou mining company mines an iron ore called alpha during : mizzou mining company mines an iron ore called alpha. during the month of december 400000 tons of alpha were mined and

Keynessian theory of income determination to explain in : to explain in detail keynes view on income determination. that is to account for income determination using the

Rainbow cruises operates a week-long cruise tour through : rainbow cruises operates a week-long cruise tour through the hawaiian islands. passengers currently pay 1800 for a

On january 10 2010 shore company purchased a block of these : ship corporation had outstanding 100000 shares of no-par common stock. on january 10 2010 shore company purchased a

Her department has had a history of not keeping enough : her department has had a history of not keeping enough inventory on hand to meet demand. she has come to you very angry

Using a financial statements model like the one shown below : a partial amortization schedule for a ten-year note payable that muro co. issued on january 1 2012 is shown here

In addition to being an effective means of estimating : in addition to being an effective means of estimating uncollectible accounts the aging of ar is often used as a guide

Prepare an absorption costing income statement of the : a. debits credits cash 48000 accounts rec. 224000 inventory 60000 buildings and equ. 370000 accounts payable 93000

User Account

All Pages