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

Watch accounting witts video titled cash and accrual -

Watch Accounting WITT's video titled "Cash and Accrual - Conceptual": https://www.youtube.com/watch?v=aPwdgUDXkkE&feature=youtu.be Based on the video, explain two (2) advantages and two (2) disadvantages in using both th ...

1 a title page replace this page with your title page

1. A title page (replace this page with your title page), proper grammar and a reference list. 2. A 2-3 page summary of the article - here's a suggested method for writing the summary: a. Read the article and make sure y ...

Accounting assignmentthis project requires you to select a

Accounting Assignment This project requires you to select a business and analyze part of its accounting information system. You will focus on a selected business process, develop conclusions from your observations, and a ...

Question 1 ldquoaccountancy is an information systemrdquo

Question 1. “Accountancy is an Information System”. Do you agree? Substantiate your answer with reasons. How does an Accountant help in planning and controlling a large commercial organization? Explain.    Question 2. Th ...

Fasb ongoing projectproject objectivedescribe the history

FASB Ongoing Project Project Objective Describe the history, current status, and adoption implications of a Financial Accounting Standards Board ongoing project. Requirements The FASB has several ongoing projects that in ...

Accounting theory and contemporary issues individual case

Accounting Theory and Contemporary Issues Individual case study Assignment- Assessment Description - Learning Outcome:  Research and argue a position in regard to a contemporary issue in the accounting profession. Evalua ...

Case study requirementsbullselect an accounting topic of

Case Study Requirements • Select an accounting topic of your choice - this could be revenue recognition, inventory valuation, fair value, stock options, derivatives, investments, segment reporting, leases, just to name a ...

Background of projectthe industry of medical devices

Background of Project The industry of medical devices involves a number of monitoring and reconstructive devices. Some of those devices include cardiac and diabetic care as well as hip and knee replacements. The owners o ...

1 here is a very detailed article on asset

1. Here is a very detailed article on asset valuation. http://www.investopedia.com/articles/stocks/07/allocate_assets.asp What have you found interesting in this article? How can this help you as you progress with your a ...

Writing assignment cash and receivablesassignment

Writing Assignment: Cash and Receivables Assignment Goals: - Obtain research experience in the Accounting Standards Codification - Obtain experience using SEC filings and the SEC website - Practice writing concise accoun ...

  • 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