Prepare all appropriate journal entries related to the

Assignment Help Accounting Basics
Reference no: EM13570974

As a long-term investment at the beginning of the fiscal year, Florists International purchased 30% of Nursery Supplies Inc.'s 8 million shares for $40 million. The fair value and book value of the shares were the same at that time. The company realizes that this investment typically would be accounted for under the equity method, but instead chooses the fair value option. During the year, Nursery Supplies earned net income of $50 million and distributed cash dividends of $1.25 per share. At the end of the year, the fair value of the shares is $35 million.

Required:
1. How would this investment be classified on Florists balance sheet?

  


Trading securities

Available-for-sale securities
X Significant-influence investments

Held-to-maturity securities

Other securities
2.

Prepare all appropriate journal entries related to the investment during 2013. (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).)

Event General Journal Debit Credit
1 Investment in Nursery Supplies shares


Cash

2 No journal entry required

3 Cash


Investment revenue

4 Net unrealized holding gains and losses - I/S


Fair value adjustment

Reference no: EM13570974

Questions Cloud

Bunkhouse electronics is a recently incorporated firm that : bunkhouse electronics is a recently incorporated firm that makes electronic entertainment systems. its earnings and
Ryngaert medical enterprises is considering a project that : ryngaert medical enterprises is considering a project that has the following cash flow and wacc data. what is the
Two criteria used to judge the quality of a work are craft : two criteria used to judge the quality of a work are craft how well an artwork was made and communication the
Suppose company a is quite similar to company b in most : suppose company a is quite similar to company b in most respects e.g. sizeindustrybut company a uses the allowance
Prepare all appropriate journal entries related to the : as a long-term investment at the beginning of the fiscal year florists international purchased 30 of nursery supplies
For your individual project assignment you will compare and : for your individual project assignment you will compare and contrast a work of art in a specific classification
Jasmine company produces hand tools a production budget for : jasmine company produces hand tools. a production budget for the next four months is as follows march 10300 units april
The products sales price is 4 what is thecompanys break : a companys fixed operating costs are 500000 its variable costsare 3 per unit and the products sales price is 4. what
What is the firms gain or loss at sales of 8000 watches : the weaver watch company sells watches for 25 the fixed costs are140000 and variable costs are 15 per watch.a what is

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Provide accurate descriptions of andersen''s involvement

Assume that the excerpts from the Powers Report shown in Exhibit 3 provide accurate descriptions of Andersen's involvement in Enron's accounting and financial reporting decisions. Given this assumption, do you believe that Andersen's involvement in t..

  Calculate sales revenue cost of goods sold and ending

now that operations for outdoor clinics and team events are running smoothly suzie thinks of another area for business

  Ceiling fans by ikes overhead budget for 2009 was as

ceiling fans by ikes overhead budget for 2009 was as follows factory supervision 300000 utilities costs 150000

  Best estimate of the current stock price

The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? please show your calculation.

  Variable cost per unit-dash club analysis

The dash club of tampa, florida,collected receipes from memebers and published a cookbook entitled life of the party.the book will sell for $25 per copy.the chairwoman of the cookbook development committee estimated that the club needed to sell 10..

  Prepare an income statement-variable costing

Prepare an income statement for this current year using the variable costing income statement.

  Ameen company purchased a building for 36 million ameen

ameen company purchased a building for 36 million. ameen uses straight-line depreciation for financial statement

  Accounting multiple choice questions

Multiple Choice Questions (Enter your answers on the enclosed answer sheet) Anytime an owner removes any asset for personal use it is recorded as:

  The decision to purchase or lease the automobile explain.

Paula is planning to either purchase or lease a $50,000 automobile.

  Completion of accounting cycle

What are the steps in completing the accounting cycle? How do the different steps affect the financial statements?

  Discuss how the nature of the necessary internal control

Discuss how the nature of the necessary internal control features is affected by switching from a manual system to (1) a large-scale computer-based accounting system or (2) a PC-based accounting system.

  The firms tax rate is 40 on ordinary income if the ebit is

gray has a current capital structure consisting of 400000 of 12 annual interest debt and 50000 shares of common stock.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd