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

Landscaping service pricing analysisyou own a landscaping

Landscaping Service Pricing Analysis You own a landscaping company for residential properties. Your average cost for design and implement a standard landscape change per residential property is as follows Bushes @ $130 F ...

Problem 1 mat Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75

Problem 1 Mat. Date Rate(%) 1/15/2017 0.5 4/15/2017 0.6 7/15/2017 0.75 10/15/2017 1.0 1/15/2018 1.25 4/15/2018 1.5 7/15/2018 1.75 10/15/2018 2.0 1/15/2019 2.1 4/15/2019 2.2 7/15/2019 2.3 10/15/2019 2.4 Table 1: Continuou ...

Accountingbulluse the internet to research an annual report

Accounting • Use the Internet to research an annual report of a retail company. • Then, imagine you are an investor or creditor; suggest the ratios that you believe would provide an investor or creditor with the most imp ...

1 what does it mean to create a culture of honesty openness

1. What does it mean to create a "Culture of Honesty, Openness, and Assistance?" Give some examples from an organization with which you have been affiliated. (250 words) 2. Review the section Preventing Fraud-A Sumary an ...

1 several years ago courtney borrowed 100000 from the

1) Several years ago, Courtney borrowed $100,000 from the Friendly Local Bank and used it to buy an apartment building. Courtney has not been able to rent any of the apartments in the building and has not made any princi ...

1 the manufacture of herbal health tonic is a competitive

1. The manufacture of herbal health tonic is a competitive industry. The manufacturing facilities have an annual output of 100,000 gallons. Operating costs are $2 per gallon. A 100,000 gallon capacity plant costs $500,00 ...

Company annual report study -choose any company and make a

COMPANY ANNUAL REPORT STUDY - Choose any company and make a report: Introduction (about 100 words) Conceptual framework (300 words) Ethics (not more than 150 words) Corporate governance (not more than 150 words) Legitima ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

Accounting and regulatory environmenti need someone to

Accounting and Regulatory Environment. I need someone to write a paper for me on accounting and the regulatory environment. The instructions are below on what it is to include. In the wake of the accounting and finance s ...

Assignment business analyticsthis assignment requires you

Assignment Business Analytics This Assignment requires you to use Excel in all three questions. Make sure you explain your answers and provide the regression output tables for questions 1 and 2. Submit your Assignment to ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen