Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

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

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

July 6. Split Whalen Inc. stock 2 for 1 and receive 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 a brokerage commission of $50.

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

31. Whalen Inc. is classified 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. Purchased an 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.

Instructions:

1. Journalize entries to record preceding transitions.

2. Create 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.:- M921431

Have any Question? 


Related Questions in Accounting Basics

Assignment change modelassume you are the sales and

Assignment Change Model Assume you are the Sales and Marketing Director for Sea Treasures, a small group of well-known retail stores specializing in exotic sea life and high-end accessories for aquariums. The company has ...

Comprehensive problem 1morgan companys balance sheet at

Comprehensive Problem 1 Morgan Company's balance sheet at December 31, 2016, is presented below. Morgan Company Balance Sheet December 31, 2016 Cash $30,000 Accounts Payable $12,250 Inventory 3050 Interest Payable 300 Pr ...

Section i multiple choicemark one box only to indicate the

Section I: Multiple Choice Mark one box only to indicate the answer you consider correct for each question 1. Which of the following is the goal of the U.S. health care system? a. Access b. Cost c. Quality d. All of the ...

Question 1how would outstanding checks be handled when

Question 1 How would outstanding checks be handled when reconciling the ending cash balance per the bank statement to the correct adjusted cash balance? A. They would be added to the balance of the bank statement. B. The ...

Course project portfolio of international accounting

Course Project: Portfolio of International Accounting Findings Throughout your course work, you explored topics such as cost and revaluation models of accounting, revenue recognition, assets and liabilities, translation ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference "Forecasting" Please respond to the following: • Assess the financial performance forecasting proc ...

Problem -the stay healthy medical clinics balance sheet on

Problem - The Stay Healthy Medical Clinic's Balance sheet on December 31, 2014 showed an owner's equity of $1,280,000. The December 31, 2015 balance sheet showed an owner's equity of $1,520,000. During the year, the owne ...

Discussion liabilities please respond to the followingfor

Discussion: "Liabilities" Please respond to the following: For this week's eActivity, research one publicly traded company in which you are interested using the Internet and/or Strayer databases. Locate the company Websi ...

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 ...

Accounting discussion questionaccounts receivable bad debt

Accounting Discussion Question "Accounts Receivable Bad Debt Expense (Direct Write Off Method Vs Allowance Method)": • Discuss the primary advantages and disadvantages of applying the direct write-off over the allowance ...

  • 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