Use the data given in E-S-6. On May 21, 2022, Athens Company sold its investment in Techno
Question:
Use the data given in E-S-6. On May 21, 2022, Athens Company sold its investment in Techno mite stock for $28 per share.
Data in E-S-6.
Athens Company completed these long-term equity investment transactions during 2021:
1. Journalize the sale. No explanation is required.
2. How does the gain or loss you recorded differ from the gain or loss recorded on December 31, 2021?
Transcribed Image Text:
2021 Apr 10 Jul 22 Dec 31 Purchased 400 shares of Technomite stock (less than 10% of Technomite's outstanding stock), paying $18 per share. Athens Company intends to hold the investment indefinitely. Received a cash dividend of $1.21 per share on the Technomite stock. Adjusted the Technomite investment to its current market value of $4,900.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (10 reviews)
Req1 Req2 This gain on sale of securities is a realized gain The loss recor...View the full answer
Answered By
Caroline Kinuthia
Taking care of the smaller details in life has a larger impact in our general well being, and that is what i believe in. My name is Carol. Writing is my passion. To me, doing a task is one thing, and delivering results from the task is another thing. I am a perfectionist who always take things seriously and deliver to the best of my knowledge.
4.90+
1934+ Reviews
4273+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Use the data given in S8-3. Assume that on January 1, 2015, Sperrey Motors sold half its investment in Phase Motors. Te sale price was $115 million. Compute Sperrey Motors gain or loss on the sale....
-
Use the data given in Exercise 14.29 to verify that the true regression function is estimated by , =-15 1.36-1622x, + 13.4&g + .094x3-2534 +492x 2.*5
-
Use the data given in Exercise 4.33 to construct two scatterplots one of number of cell phone calls versus age and the other of number of text messages sent versus age. Based on the scatterplots, do...
-
Zelmer Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2017. The following data were used in...
-
A roller coaster car traveling at a constant speed of 20.0 m/s on a level track comes to a straight incline with a constant slope. While going up the incline, the car has a constant acceleration of...
-
The following December 31, 2018, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash and cash...
-
A \(2 \mathrm{~cm}\)-diameter, \(19 \mathrm{~cm}\)-long tube is placed touching a pool of liquid. The end away from the liquid pool \((\mathrm{z}=0.19 \mathrm{~m})\) is in an air stream (component C)...
-
Randy Coburn opened a law office, Randy Coburn, Attorney at Law, on July 1, 2015. On July 31, the balance sheet showed Cash $4,000, Accounts Receivable $1,500, Supplies $400, Equipment $5,000,...
-
b ) Explain how you could determine whether PPP exists. Describe a limitation in testing whether PPP holds.
-
1. What does an equipment trust certificate imply? 2. What is the cost of each bond if it is priced to yield 8 percent? 3. How much will have to be invested in the zero coupon bond to meet the...
-
On January 1, 2021, Western Motors paid $450 million for a 40% investment in Yaza Motors. Yaza earned net income of $65 million and declared and paid cash dividends of $45 million during 2021. 1....
-
Athens Company completed these long-term equity investment transactions during 2021: 1. Journalize Athens Companys investment transactions. Explanations are not required. 2. Assume the Techno mite...
-
Prudence was named a shareholder in her law firm, which operates as an S corporation. Her payments into the firms capital were to start in approximately nine months, when an audit would determine the...
-
Skysong Marine Company's income statement for the year ended December 31, 2025 reported a net loss of $17900. Additional information for the period is as follows: o The cash balance increased $5,000...
-
In November of 2022, Bruno, a cash basis CPA, contracted to perform an audit for $2,000 and to prepare the corporate tax return for $1,000. The contract called for payment on Jan.31, 2023. The client...
-
The Philippine Institute of Volcanology and Seismology (PHIVOLCS) records an average of 20 earthquakes a day. What is the probability that, in any day, the Philippines will be hit by: a. exactly 10...
-
1. The ZARM tower in Bremen contains the world longest vertical vacuum tube [110m]. A sample is dropped (zero velocity) from its top, and once it reaches the bottom is taken horizontally further...
-
What are the mechanisms underlying species diversification and speciation processes, including allopatric, sympatric, and parapatric speciation, and how do ecological, genetic, and reproductive...
-
An astronaut exercising on a treadmill maintains a pulse rate of 150 per minute. If he exercises for 1.00 h as measured by a clock on his spaceship, with a stride length of 1.00 m/s, while the ship...
-
Describe basic managerial approaches to implementing controls and how these are implemented.
-
Joy Tiede opened Tiede Company, a veterinary business in Neosho, Wisconsin, on August 1, 2012. On August 31, the balance sheet showed: Cash $9,000; Accounts Receivable $1,700; Supplies $600;...
-
RV Oasis was started on April 1 by Taras Dankert. These selected events and transactions occurred during April. Apr. 1 Stockholders invested $70,000 cash in the business in exchange for common stock....
-
Troy Ridgell incorporated Ridgell Consulting, an accounting practice, on May 1, 2012. During the first month of operations, these events and transactions occurred. May 1 Stockholders invested $40,000...
-
What proportion of variability in Sale_amount is explained by the model
-
Use information from the cost-benefit table to answer questions 11-12. Dollar amounts are rounded. Program Benefits per person Costs per person Benefits per Dollar of Cost Benefits Minus Costs...
-
In this assignment, you will be preparing quarterly statistics for reporting on the Quarterly CMI. To determine the CMI, several calculations are required using the data provided to arrive at the...
Study smarter with the SolutionInn App