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 .