WEEK 2 EXERCISES ASSIGNMENT
\n\u00a0
\nExercise 15-1
\nDuring its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.
\n\u00a0
\nJan. 10 Issued\u00a080,000\u00a0shares for cash at $6\u00a0per share.
\nMar. 1 Issued\u00a05,000\u00a0shares to attorneys in payment of a bill for $35,000\u00a0for services rendered in helping the company to incorporate.
\nJuly 1 Issued\u00a030,000\u00a0shares for cash at $8\u00a0per share.
\nSept. 1 Issued\u00a060,000\u00a0shares for cash at $10\u00a0per share.
\n\u00a0
\n(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5\u00a0per share.
\n(b) Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $3\u00a0per share.
\n\u00a0
\n(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\nDate Account Titles and Explanation Debit Credit
\n(a) Jan. 10
\nMar. 1
\nJuly 1
\nSept. 1
\n(b) Jan. 10\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\nMar. 1
\nJuly 1
\nSept. 1
\n\u00a0
\nExercise 15-6
\nLindsey Hunter Corporation is authorized to issue\u00a050,000\u00a0shares of $5\u00a0par value common stock.
\n\u00a0
\nDuring 2014, Lindsey Hunter took part in the following selected transactions.
\n1. Issued\u00a05,000\u00a0shares of stock at $45\u00a0per share, less costs related to the issuance of the stock totaling $7,000.
\n2. Issued\u00a01,000\u00a0shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $46\u00a0per share on the date of issuance.
\n3. Purchased\u00a0500\u00a0shares of treasury stock at $43\u00a0per share. The treasury shares purchased were issued in 2010 at $40\u00a0per share.
\n(a) Prepare the journal entry to record item 1.
\n(b) Prepare the journal entry to record item 2.
\n(c) Prepare the journal entry to record item 3 using the cost method.
\n(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\n\u00a0
\nNo. Account Titles and Explanation Debit Credit
\n(a)
\n(b)
\n(c)
\n\u00a0
\n\u00a0
\nExercise 15-14
\nThe stockholders\u2019 equity accounts of G.K. Chesterton Company have the following balances on December 31, 2014.
\nCommon stock, $10 par,\u00a0300,000\u00a0shares issued and outstanding\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $3,000,000
\nPaid-in capital in excess of par\u2014common stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,200,000
\nRetained earnings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 5,600,000
\n\u00a0
\nShares of G.K. Chesterton Company stock are currently selling on the Midwest Stock Exchange at $37.
\nPrepare the appropriate journal entries for each of the following cases. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\n\u00a0
\n(a) A stock dividend of\u00a05% is (1) declared and (2) issued.
\n(b) A stock dividend of 100% is (1) declared and (2) issued.
\n(c) A\u00a02-for-1 stock split is (1) declared and (2) issued.
\n\u00a0
\nNo. Account Titles and Explanation Debit Credit
\n(a)\u00a0(1)
\n(a)\u00a0(2)
\n(b)\u00a0(1)
\n(b)\u00a0(2)
\n(c)\u00a0(1)
\n(c)\u00a0(2)
\n\u00a0
\nExercise 15-18
\nAnne Cleves Company reported the following amounts in the stockholders\u2019 equity section of its December 31, 2013, balance sheet.
\nPreferred stock,\u00a010%, $100\u00a0par (10,000 shares authorized,\u00a02,000\u00a0shares issued) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $200,000
\nCommon stock, $5\u00a0par (100,000\u00a0shares authorized,\u00a020,000\u00a0shares issued) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 100,000
\nAdditional paid-in capital \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 125,000
\nRetained earnings \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 450,000
\n\u00a0\u00a0\u00a0Total \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $875,000
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\nDuring 2014, Cleves took part in the following transactions concerning stockholders\u2019 equity.
\n\u00a0
\n1. Paid the annual 2013 $10\u00a0per share dividend on preferred stock and a $2\u00a0per share dividend on common stock. These dividends had been declared on December 31, 2013.
\n2. Purchased\u00a01,700\u00a0shares of its own outstanding common stock for $40\u00a0per share. Cleves uses the cost method.
\n3. Reissued\u00a0700\u00a0treasury shares for land valued at $30,000.
\n4. Issued\u00a0500\u00a0shares of preferred stock at $105\u00a0per share.
\n5. Declared a\u00a010% stock dividend on the outstanding common stock when the stock is selling for $45\u00a0per share.
\n6. Issued the stock dividend.
\n7. Declared the annual 2014 $10\u00a0per share dividend on preferred stock and the $2\u00a0per share dividend on common stock. These dividends are payable in 2015.
\n\u00a0
\n(a) Prepare journal entries to record the transactions described above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\nNo. Account Titles and Explanation Debit Credit
\n(b) Prepare the December 31, 2014, stockholders\u2019 equity section. Assume 2014 net income was $330,000. (Enter account name only .Do not provide any descriptive information.)
\n\u00a0
\n\u00a0
\nExercise 16-2
\nAubrey Inc. issued $4,000,000\u00a0of\u00a010%, 10-year convertible bonds on June 1, 2014, at\u00a098\u00a0plus accrued interest. The bonds were dated April 1, 2014, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis.
\nOn April 1, 2015, $1,500,000\u00a0of these bonds were converted into\u00a030,000\u00a0shares of $20\u00a0par value common stock. Accrued interest was paid in cash at the time of conversion.
\n\u00a0
\n(a) Prepare the entry to record the interest expense at October 1, 2014. Assume that accrued interest payable was credited when the bonds were issued.
\n\u00a0
\n(b) Prepare the entry to record the conversion on April 1, 2015. (Book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment has been made.
\n\u00a0
\n(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. $3,500.)
\nNo. Account Titles and Explanation Debit Credit
\n\u00a0
\nExercise 16-7
\nIlliad Inc. has decided to raise additional capital by issuing $170,000\u00a0face value of bonds with a coupon rate of\u00a010%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $136,000, and the value of the warrants in the market is $24,000. The bonds sold in the market at issuance for $152,000.
\n(a) What entry should be made at the time of the issuance of the bonds and warrants? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\nAccount Titles and Explanation Debit Credit
\n(b) Prepare the entry if the warrants were nondetachable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\n\u00a0
\nExercise 17-2
\nOn January 1, 2013, Dagwood Company purchased at par\u00a012% bonds having a maturity value of $300,000. They are dated January 1, 2013, and mature January 1, 2018, with interest receivable December 31 of each year. The bonds are classified in the held-to-maturity category.
\n\u00a0
\n(a) Prepare the journal entry at the date of the bond purchase.
\n(b) Prepare the journal entry to record the interest received for 2013.
\n(c) Prepare the journal entry to record the interest received for 2014.
\n\u00a0
\n(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\nNo. Date \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Account Titles and Explanation \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Debit \u00a0\u00a0 Credit
\n(a)\u00a0 Jan. 1, 2013
\n(b) Dec. 31, 2013
\n(c) Dec. 31, 2014
\n\u00a0
\nExercise 17-4
\nOn January 1, 2013, Hi and Lois Company purchased\u00a012% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a\u00a010.00% yield. They are dated January 1, 2013, and mature January 1, 2018, with interest receivable December 31 of each year. Hi and Lois Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.
\n2013\u00a0\u00a0\u00a0 $320,500\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2016 \u00a0\u00a0 $310,000
\n2014\u00a0 \u00a0 $309,000\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2017 \u00a0\u00a0 $300,000
\n2015 \u00a0\u00a0 $308,000
\n\u00a0
\n(a) Prepare the journal entry at the date of the bond purchase.
\n(b) Prepare the journal entries to record the interest received and recognition of fair value for 2013.
\n(c) Prepare the journal entry to record the recognition of fair value for 2014.
\n(Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\n\u00a0
\nNo. Date Account Titles and Explanation Debit Credit
\n(a) Jan. 1, 2013
\n(b) Dec. 31, 2013
\nDec. 31, 2013
\n(c) Dec. 31, 2014
\n\u00a0
\nExercise 17-7
\nOn December 21, 2013, Bucky Katt Company provided you with the following information regarding its trading securities.
\n\u00a0
\nDecember 31, 2013
\nInvestments (Trading) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cost \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fair Value \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Unrealized Gain (Loss)
\nClemson Corp. stock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $20,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $19,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $(1,000)
\nColorado Co. stock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 10,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,000)
\nBuffaloes Co. stock \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,600 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 600
\nTotal of portfolio \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $50,000 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $48,600 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 (1,400)
\nPrevious fair value adjustment balance \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0
\nFair value adjustment\u2014Cr. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $(1,400)
\n\u00a0
\nDuring 2014, Colorado Company stock was sold for $9,400. The fair value of the stock on December 31, 2014, was Clemson Corp. stock\u2014$19,100; Buffaloes Co. stock\u2014$20,500.
\n\u00a0
\n(a) Prepare the adjusting journal entry needed on December 31, 2013.
\n(b) Prepare the journal entry to record the sale of the Colorado Company stock during 2014.
\n(c) Prepare the adjusting journal entry needed on December 31, 2014.
\n\u00a0
\n(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\nExercise 17-13
\nParent Co. invested $1,000,000\u00a0in Sub Co. for 25% of its outstanding stock. Sub Co. pays out\u00a040% of net income in dividends each year.
\nUse the information in the following T-account for the investment in Sub to answer the following questions.
\nInvestment in Sub Co.
\n1,000,000\u00a0
\n110,000\u00a0
\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 44,000
\n\u00a0
\n(a) How much was Parent Co.\u2019s share of Sub Co.\u2019s net income for the year?
\nNet income $
\n\u00a0
\n(b) How much was Parent Co.\u2019s share of Sub Co.\u2019s dividends for the year?
\nDividends $
\n\u00a0
\n(c) What was Sub Co.\u2019s total net income for the year?
\n\u00a0Total net income $
\n\u00a0
\n(d) What was Sub Co.\u2019s total dividends for the year?
\nTotal Dividends $
\n\u00a0
\n\u00a0
\nExercise 17-16
\nJaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2013. The purchase price was $1,200,000\u00a0for\u00a050,000\u00a0shares. Kulikowski Inc. declared and paid an $0.85\u00a0per share cash dividend on June 30 and on December 31, 2014. Kulikowski reported net income of $730,000\u00a0for 2014. The fair value of Kulikowski\u2019s stock was $27\u00a0per share at December 31, 2014.
\n\u00a0
\n(a) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps cannot exercise significant influence over Kulikowski. The securities should be classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\n\u00a0
\nDate \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Account Titles and Explanation \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Debit \u00a0\u00a0 Credit
\nDec. 31, 2013
\nJune 30, 2014
\nDec. 31, 2014
\n\u00a0
\n(b) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps can exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \u201cNo Entry\u201d for the account titles and enter 0 for the amounts.)
\nDate Account Titles and Explanation Debit Credit
\nDec. 31, 2013
\nJune 30, 2014
\nDec. 31, 2014
\n\u00a0
\n(c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2014? What is the total net income reported in 2014 under each of these methods?
\nFair Value Method Equity Method
\nInvestment amount
\nDividend revenue
\n\u00a0
\nInvestment income (income statement)<\/p>\n","protected":false},"excerpt":{"rendered":"
WEEK 2 EXERCISES ASSIGNMENT \u00a0 Exercise 15-1 During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-147646","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/posts\/147646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/comments?post=147646"}],"version-history":[{"count":0,"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/posts\/147646\/revisions"}],"wp:attachment":[{"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/media?parent=147646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/categories?post=147646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/academicwritersbay.com\/answers\/wp-json\/wp\/v2\/tags?post=147646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}