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The following transactions were made by Allen Company. Assume all investments are
short-term and are readily marketable.
Instructions
Journalize the transactions.
Answer:
Gerber Corporation purchased the following long-term investments in stock securities
on January 10, 2015:
10,000 shares of the 100,000 outstanding common shares of Todd Corporation for
$400,000.
3,000 shares of the 10,000 outstanding common shares of Carey Company for
$135,000.
6,000 shares of the 50,000 outstanding common shares of Maris Company for
$150,000.
Other information:
Instructions
Prepare the journal entries for Gerber Corporation to record the acquisition of the
long-term stock investments, the receipt of dividends, and any other necessary entries at
year end on December 31, 2015. Assume that Gerber Corporation's ownership interest
in each company remained constant throughout the year.
Answer:
A good internal control feature is to have a written hiring authorization form completed
before a new employee is added to the payroll.
Answer:
On July 1, 2015, Damlen Jurado Company pays $12,000 to its insurance company for a
2-year insurance policy.
Instructions
Prepare the necessary journal entries for Damlen Jurado on July 1 and December 31.
Answer:
The return on ________________ shows how many dollars of net income were earned
for each dollar invested by owners.
Answer:
At December 31, 2015, Biltmore Corporation has the following securities:
Prepare the necessary adjusting entries to report the securities at fair value.
Answer:
As soon as a corporation is authorized to issue stock, an accounting journal entry should
be made recording the total value of the shares authorized.
Answer:
