(Answered) Bart company had outstanding 30000 shares of common stock

Accounting

Bart Company had outstanding 30,000 shares of common stock, par value $ 10 per share. On January 1, 2015, Homer Company purchased some of these shares at $ 25 per share, with the intent of holding them for a long time. At the end of 2015, Bart Company reported the following: net income, $ 50,000, and cash dividends declared and paid during the year, $ 25,500. The fair value of Bart Company stock at the end of 2015 was $ 22 per share.

Required:

1. This problem involves two separate cases. For each case (shown in the table), identify the method of accounting that Homer Company should use. Explain why.

2. Give the journal entries for Homer Company at the dates indicated for each of the two independent cases. If no entry is required, explain why. Use the following format:

3. Complete the following schedule to show the separate amounts that should be reported on the 2015 financial statements of Homer Company:

4. Explain why the assets, stockholders equity, and income statements for the two cases differ.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91526145
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - phil goode will receive 112000 in 19 years his

Question - Phil Goode will receive $112,000 in 19 years. His friends are very jealous of him. If the funds are discounted back at a rate of 14 percent, what is the present value of his future "pot of gold"?

Question - aqua corporation is a retail operation

Question - Aqua Corporation is a retail operation specializing in pool equipment and outdoor furniture. It is very interested in merging with Icterine Corporation, a lamp manufacturer; Aqua is very profitable and Icterin ...

Question - on january 1 year 1 homeland entity he signed a

Question - On January 1, year 1, Homeland Entity (HE) signed a 20-year lease contract for an office building. The lease contract calls for HE to make payments of $10,000 at the beginning of each year, with the first paym ...

Question access the answer the questions and submit to me

Question: Access the answer the questions and submit to me via Canvas. 1. What is a sole proprietorship and how is it taxed? 2. Define the term "limited liability". 3. List the advantages of an "S" corporation 4. Define ...

Question - sometimes a temporary difference will produce

Question - Sometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts. Describe at least one situation that has this effect. How are future deductible amou ...

Question define accounting and describe its role in

Question: Define accounting and describe its role in business.? Accounting, the language of business allows for the communication and distribution of information to owners, managers, and investors to evaluate a company's ...

Question - domingo entity entered into a contract to

Question - Domingo Entity entered into a contract to exchange a liability. However, this particular liability does not have a quoted price in Domingo's principle market. Sabado Entity holds an asset similar to the liabil ...

Question - lopez company purchased goods with the following

Question - Lopez Company purchased goods with the following terms and details: Sales price, $5,000 Terms, 1/10, n/30 Date of sale, March 8 Date of payment, March 19 Returns and allowances (before payment), $200 Shipping, ...

Question select a company that uses technology for

Question: Select a company that uses technology for competitive advantage. In a 2 page paper discuss the technology that the company uses and why it provides an advantage over competitors. Also include: Summary of the pr ...

Question - canberry corporation had net income of 116000

Question - Canberry Corporation had net income of $116,000, beginning total assets of $856,000 and ending total assets of $760,000. Calculate its return on total assets? 738% 15.3% 655% 14.4% 13.6%

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert