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E12-7: On January 1, Vince Corporation purchased a 25% equity
in Morelli Corporation for $180,000. At December 31, Morelli
declared and paid a $60,000 cash dividend and reported net
income of $200,000. ............
a)
Journalize the transactions. ............
b)
Determine the amount to be reported as an investment in
Morelli stock at December 31. ............
E12-8: Presented below are two independent situations. ............
Prepare all the necessary journal entries for 2014 for (a) Chicory
Cosmetics and (b) Frank, Inc. ............
E12-12: Zippydah Company has the following data at December
31, 2014.
The non-trading securities are held as a long-term investment.
............
a)
Prepare the adjusting entries to report 1. Trading securities
at fair value and 2. Non-trading securities at fair value. ............
b)
Indicate the statement presentation of each class of
securities. ............
P12-2A : In January 2014, the management of Stefan Company
concludes that it has sufficient cash to permit some short-term
investments in debt and stock securities. During the year, the
following transactions occurred. ............
At December 31, the fair value of the Superior common stock was
$55 per share. The fair value of the Pawlik common stock was
$24 per share. ............
a) Journalize the transactions and post to the accounts Debt
Investments and Stock Investments. ............