Prepare the journal entry to record stock, Cost Accounting

Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long-term investment for $900,000. During the year, Paxton Corporation reported net income of $300,000 and paid dividends of $100,000.

Instructions

(a) Assuming that the 35,000 shares represent a 10% interest in Paxton Corporation:

1. Prepare the journal entry to record the investment in Paxton stock.

2. Prepare any entries that Rosco Company should make in accounting for its investment in Paxton stock during the year.

3. What is the balance of the Stock Investments account on Rosco Company's books at the end of the year?

(b) Repeat requirement (a) above except assume that the 35,000 shares represent a 20% interest in Paxton Corporation.

 

Posted Date: 3/18/2013 3:44:19 AM | Location : United States







Related Discussions:- Prepare the journal entry to record stock, Assignment Help, Ask Question on Prepare the journal entry to record stock, Get Answer, Expert's Help, Prepare the journal entry to record stock Discussions

Write discussion on Prepare the journal entry to record stock
Your posts are moderated
Related Questions
Advantage and Disadvantages of Zero Based Budgeting Advantages 1. Resources allocation is more efficient. 2. Focus attention on values for money and makes clear relat

Making Variance Analysis More Meaningful To compose variance analysis as useful aid to management is the main objective of variance calculations.  However this can only be don

Valuation of Work In Progress The concept of Equivalent units It is a notional quantity of completed goods in the production process. This is a collection of work applic

Please kindly post some problems along with solutions so it is easy to understand..I am quite satisfied by the per-forma you have mentioned.. THANK YOU.

Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling pri


what is Taylor''s differential piece rate plan

Multiple Products, Selling Costs, and Margin Management Selling charge are oftentimes variable. For instance, a salesperson can be paid a designated percentage of entire sales

Uniform Costing It is a general system utilizing agreed concepts, standard and principles accounting practices adopted via different entities in the similar industry to ensure

Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs