Three investments that are classified as noncontrolling

Assignment Help Financial Accounting

Reference no: EM131296120

John Corporation has three investments that are classified as noncontrolling. 1.A bond investment, purchased on Jan 1, 2014 and maturing on Dec. 31, 2020. These bonds were purchased to help out the issuing company and because the interest income was quite high. 2. An investment in Mark Company stock, purchased on Dec. 1, 2014 because the price was low and John Corp. had some excess cash to invest. John Corporation's investment manager did not like taking risk or playing the market on an active basis. 3. An investment in 25% of the stock of Smith Company, a new customer who was experiencing management difficulties that affected their profitability. John Corp. intended to keep this investment for as long as it took to stabilize the company. Answer the following questions about these investments. Question 19 Not yet answered Points out of 1 Not flaggedFlag question Question text Where and when would John Corporation report interest income for the bond investment? Select one: a. on the Income Statement only at year end. b. in the Accumulated Comprehensive Net Income portion of the Balance Sheet when received c. on the Income Statement when received. d. On the Income Statement when earned.

Reference no: EM131296120

Questions Cloud

What would now be their break-even point : Banes Manufacturing had the following information about their activity in June, 2013. Selling price per unit $ 10.00 Materials cost per unit 1.60 Direct labor per unit 1.00 Variable manufacturing overhead per unit 1.75. In addition, they increased fi..

Deal on the interest rate with the vendor : In an equipment acquisition proposal, MKBK Enterprises has worked out to deal on the interest rate with the vendor. The equipment is being financed for 10 years with monthly payments. The deal with the vendor worked out is as below. Determine the mon..

The production budget calls for producing : Morie Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.70 direct labor-hours. The direct labor rate is $10.60 per direct labor-hour. The production budget calls for producing 7,600 units in Mar..

Used in generally accepted accounting principles : Determine which aspects of governmental reporting provide the rationale for the emphasis on expenditures rather than full accrual expenses, as used in Generally Accepted Accounting Principles (GAAP). Provide a rationale for your determination.

Three investments that are classified as noncontrolling : John Corporation has three investments that are classified as noncontrolling. 1.A bond investment, purchased on Jan 1, 2014 and maturing on Dec. 31, 2020. These bonds were purchased to help out the issuing company and because the interest income was ..

What would be true of the journal entry : What would be true of the journal entry made to issue 10,000 shares of 6% $100 par Preferred Stock for a total of $ 1,500,000.

Government-wide financial statements : The basic financial statements include two government-wide financial statements: the statement of net position and the statement of activities. The government-wide financial statements report information about the city as a whole using accounting met..

What are desired ending direct materials in pounds : If the required direct materials purchases are 21,200 pounds, the direct materials needed for production are 53,800, and the beginning direct materials are 66,400, what are the desired ending direct materials in pounds?

Dividing partnership income : Morrison and Amato have decided to form a partnership. They have agreed that Morrison is to invest $150,000 and that Amato is to invest $50,000. Morrison is to devote one-half time to the business and Amato is to devote full time. The following plans..

User Account

All Pages