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

A foreign company plans to clear several dozen acres of ecologically valuable mangrove swamp in Vietnam for the creation of a shrimp aquaculture facility.  This decision will creat

weekly working hour 48 , hourly wage rate 15$ , price rate per unit 6$ , normal time taken per piece 36 minuets , normal output per week 220 pieces , actual output per week 275 pie

Eagle Company is considering the purchase of an asset for $100,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Comput

Denair Fine Wines, Inc., is planning to bring out a higher-quality wine product than any currently available in Stanislaus county. They've decided on selling the blended, fortified

Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut

Question: At the beginning of the year, Asquith Company Ltd initiated a quality improvement program. The program was successful in reducing scrap and rework costs. To help asse

I'm having a hard time with this, can you please help? I know the dates are imparative also in finding the solution. Stevens purchased an auto on Jan 1, 2001. On December 31, 2003

The government of a small South Pacific island is considering whether to allow development of a small but valuable deposit of phosphate rock. Not having the resources to develop an

Hi, i need the solution manual for cost accounting managerial emphasis 12 edition