User Account

All Pages

Prepare the required journal entries

Assignment Help Accounting Basics
Reference no: EM133059416

Question - Path Corp has a December 31 year end. During 2019 and 2020, Path has the following investment transactions:

30-Jun-19 Path Corp purchased 2,100 shares of ABC Inc at $13.50 per share.

01-Sep-19 ABC Inc paid dividends of $1.10 per share.

31-Dec-19 ABC Inc shares had a fair value of $11.50 per share.

01-Jul-20 Path Corp sold all of ABC Inc shares for $15.00 per share.

Required -

Part 1 - Assume Path Corp uses the fair value through net income (FV-NI) method to account for its investments. Dividends and other investment income and losses are all reported in one investment account. Prepare the required journal entries on the following dates:

A) June 30, 2019

B) September 1, 2019

C) December 31, 2019

D) July 1, 2020

Part 2 - Assume Path Corp uses the fair value through other comprehensive income (FV-OCI) method to account for its investments (without recycling). Dividend income is required to be recorded in a separate account. Prepare the required journal entries on the following dates:

A) June 30, 2019

B) September 1, 2019

C) December 31, 2019

D) July 1, 2020

Reference no: EM133059416

Questions Cloud

Supporting information about teamwork : Describe the qualitative articles you have selected including the supporting information about teamwork.
What is Sweet and Sour Company taxable income : Sweet and Sour Company had pretax accounting income of P2,400,000 during 2020. What is Sweet and Sour Company taxable income
Developed corporate social responsibility : Many businesses have developed corporate social responsibility (CSR) plans to address environmental damage caused by civilization.
What are the types of audit report opinions : After the accountant has assessed the reasonableness of the assumption of continuing operations, what are the types of audit report opinions
Prepare the required journal entries : Dividends and other investment income and losses are all reported in one investment account. Prepare the required journal entries on the following dates
How much inventory in dollars should ABC buy in January : The selling price is $20 per unit and the unit cost is $12 per unit. How much inventory in dollars should ABC buy in January
Find the size of the required monthly deposits : If the first deposit is made on June 1, 2015 and the last deposit is made on May 1, 2020, find the size of the required monthly deposits
Determine the amount in the account : If no more deposits are made, but the money is left in the account accumulating interest for 7 more years, determine the amount in the account
Develop a professional portfolio : Develop a professional portfolio (or 'e-portfolio') that you can continue to build upon during your career as a teacher

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd