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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. ............