Rosco Company, Accounting Basics

Assignment Help:
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.
(a.) Assuming that the 35,000 shared 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) about except assume that the 35,000 shares represent a 20% interest in Paxton Corporation.

Related Discussions:- Rosco Company

What are the steps for closing entries, What are the steps for Closing entr...

What are the steps for Closing entries There is a certain order that should be used to close accounts: REID 1.  Balance of the total R evenue to Income Summary 2.  Bal

Explain about realization principle, Q. Explain about realization principle...

Q. Explain about realization principle? Realization of revenue Under the realization principle the accountant doesn't recognize (record) revenue until the seller obtains the ri

Principle of accounting I, the terms debit and credit are synonymous with l...

the terms debit and credit are synonymous with left and right.

Cash flow liquidity ratios, Liquidity refers to a company's cash position, ...

Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business.

What is public accounting, Q. What is Public accounting? Public account...

Q. What is Public accounting? Public accounting firms offer professional accounting and related services for a fee to organizations, other companies, and individuals. An accoun

Accounting for payroll employer taxes and reports, Accounting for payroll E...

Accounting for payroll Employer Taxes and Reports Everyone who works should have a social security number. All employers in this country who have at least one employee should h

.., Ask queshow to be an experttion #Minimum 100 words accepted#

Ask queshow to be an experttion #Minimum 100 words accepted#

What is the change fund, What is the change fund Business that have man...

What is the change fund Business that have many cash transactions generally establish this fund, which is an amount of money which is placed in the cash register drawer and is

Accounting theory and practice 1st year mcom, Acid test ratio = 2.5, curre...

Acid test ratio = 2.5, current ratio = 1.5 net working capital = 10,00,000 fixed assets =? Share holder''s fund = 15,00,000 Stock inventory =? Bank overdraft =? Share capital =

Prefferred dividendes, matt schmidt company''s ledger shows the amount of

matt schmidt company''s ledger shows the amount of

Write Your Message!

Captcha
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