Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Roman Products, Inc. is wholesaler of men's hair products. Company started operations on January 1, 2010. The following transitions relate to securities acquired by Roman Products, Inc., thet has a fiscal year ending on December 31:

Jan 3. bought 3,000 shares of Whalen Inc. as available-for-sale investment at $46 per share, comprising brokerage commission.

July 6. Split Whalen Inc. stock 2 for 1 and get regular cash dividend of $0.60 per share on Whalen Inc. stock after the split.

Oct 14. Sold 900 shares of Whalen Inc. stock at $25 per share, less brokerage commission of $50.

Dec. 9. Received regular cash dividend of $0.60 per share

31. Whalen Inc. is categorised as available-for-sale investment and is adjusted to fair value of $21 per share. Use Valuation Allowance for Available-for-Sale Investments account in making Adjustment.

2011

Jan. 5. bought influential interest in Tasmania Co. for $620,000 by buying 60,000 shares directly from estate of the founder of Tasmania. There are 150,000 shares of Tasmania Co. stock outstanding.

July 8. Received regular cash dividend of $0.70 per share on Whalen Inc. stock.

Dec. 8 Received regular cash dividend of $0.70 per share plus extra dividend of $0.15 per share on Whalen Inc. stock

31. Received $18,000 of cash dividends of Tasmania Co. stock. Tasmania Co. reported net income of $74,000 in 2011. Roman Products uses equity method of accounting for its investment in Tasmania Co.

31. Whalen Inc. is classified as available-for-sale investment and is adjusted to fair value of $26 per share. Use Valuation Allowance for Available-for-Sale Investment account in making adjustment.

problems:

1. Journalize entries to record preceding transitions.

2. Create the investment related asset and stockholders equality balance sheet disclosures for Roman Products, Inc., on December 31, 2011, suppose Retained Earnings balance on December 31, 2011, is $455,000.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920550

Have any Question? 


Related Questions in Accounting Basics

Accounting cycle project transaction practice set - bampg

Accounting Cycle Project Transaction Practice Set - B&G Music You have been hired as an accountant for B&G Co., a corporation performing diverse consulting services in Detroit, Michigan. B&G Co. prepares financial statem ...

1 as a small business owner in todays economy what three

1. As a small business owner in today's economy, what three financial reports would you use on a regular basis? What information would you find on each statement? What decisions might each statement help you make? Please ...

Assignmentattn ashok -find the interest rate on a loan

Assignment Attn: Ashok -Find the interest rate on a loan charging $912 simple interest on a principal of $4750 after 6 years. Find the principal of a loan at 6.2% if the simple interest after 5 years 6 months is $2387. H ...

Current developments in accounting thought - additional

Current Developments in Accounting Thought - Additional Assignment Question 1 - Mather and Peison (2006) report that public debt contracts tend to have a lower average number of accounting based debt covenants as well as ...

Excel spreadsheet and 1-2 pagesconsider the following

Excel Spreadsheet and 1-2 pages Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid ...

What is the difference between a significant deficiency and

What is the difference between a significant deficiency and a material weakness as it relates to internal Control? How does the presence of one material deficiency affect the auditor's report on internal controls under t ...

Assignment intermediate accountinginstructionsbulluse the

Assignment: Intermediate Accounting Instructions: • Use the answer sheet provided. • For the multiple choice answers, use upper case letters. • Only submit you answer sheet in the Assignment Folder NLT No late examinatio ...

Problem 1panda incs 10-k report contains the following

Problem 1 Panda Inc.'s 10-K report contains the following footnote relating to its leasing activities: At December 31, 2013, the company was committed to non-cancellable leases with remaining terms of one to 15 years. A ...

Question 1a firms legal capital is defined as the par value

Question 1 A firm's legal capital is defined as the par value of its common stock. The following table represents a scaled version of the equity account of FIRM XYZ: Common stock at par R 136586 Paid-in capital in excess ...

Part 1royal oak taxation advisory service has the following

PART 1 Royal Oak Taxation Advisory Service has the following transactions for the month of December 2016 : Dec. 1 Commenced business by depositing $50 000 in a bank account in the name of the business 2 Bought a vehicle ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro