Question 26
Simmons Corporation owns stock of Armstrong, Inc. Prior to 2012, the investment was accounted for using the equity method. In early 2012, Simmons sold part of its investment in Armstrong, and began using the fair value method. In 2012, Armstrong earned net income of $ 81,100 and paid dividends of $ 90,400. Prepare Simmons ‟ s entries related to Armstrong ‟ s net income and dividends, assuming Simmons now owns 11 % of Armstrong ‟ s stock.
Question 27
Manno Corporation has the following information available concerning its postretirement benefit plan for 2012.
Service cost $ 53,750 Interest cost 58,360 Actual return on plan assets 40,190 Compute Manno ‟ s 2012 postretirement expense Question 28
Ravonette Corporation issued 310 shares of $ 13 par value common stock and 130 shares of $ 47 par value preferred stock for a lump sum of $ 17,500. The common stock has a market price of $ 22 per share, and the preferred stock has a market price of $ 98 per share. Prepare the journal entry to record the issuance
Question 29
Garfield Company purchased, as a held-to-maturity investment, $ 82,400 of the 9 %, 8-year bonds of Chester Corporation for $ 73,919, which provides an 11 % return. Prepare Garfield ‟ s journal entries for( a) the purchase of the investment and( b) the receipt of annual interest and discount amortization. Assume effective interest amortization is used.