Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At December 31, Year 8, Poe Corp.'s common stock account is as follows: Common stock ($10 par), 500,000 shares outstanding $5,000,000 At December 31, Year

image text in transcribed
image text in transcribed
image text in transcribed
At December 31, Year 8, Poe Corp.'s common stock account is as follows: Common stock ($10 par), 500,000 shares outstanding $5,000,000 At December 31, Year 8, Poe Corp. held the following investments in equity securities: Axe Corp. 1,000 shares, $2.40 convertible preferred stock $40,000 Purl, Inc., 6,000 shares of common stock 60,000 Day Co 2,000 shares of common stock 55,000 During Year 9. Poe disposed of the following securities: 1. January 18 - sold 2,500 shares of Purl for $13 per share 2. June 1 - Sold 500 shares of Day, after a 10% stock dividend was received, for $21 per share 3. October 1 - converted 500 shares of Axe's preferred stock into 1,500 shares of Axe's common stock, when the market price was $60 per share for the preferred stock and $21 per share for the common stock At December 31, Year 9, fair values per share of the securities were as follows: At December 31 Year 9 Year 8 Axe Corp. --preferred $56 $40 Axe Corp. - common 20 18 Purl, Inc. - common 11 10 Day Co. - common 22 27.50 All of the foregoing stocks are listed on major stock exchanges. Calculate the amounts pertaining to Poe's current equity securities using the information above. Enter the appropriate amounts in the designated cells below. If no entry is necessary, enter a zero (0). Indicate a loss by using a leading minus (-) sign. Item Amount 123 1. The number of Axe preferred shares owned by Poe at 12/31/Year 9 123 2. The aggregate carrying amount of Poe's securities at 12/31/Year 9 before Calculate the amounts pertaining to Poe's current equity securities using the information above. Enter the appropriate amounts in the designated cells below. If no entry is necessary, enter a zero (O). Indicate a loss by using a leading minus (-) sign Item Amount 12 1. The number of Axe preferred shares owned by Poe at 12/31/Year 9 2. The aggregate carrying amount of Poe's securities at 12/31/Year 9 before remeasurement 12 3. The unrealized gain or loss for Year 9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health And Safety Environment And Quality Audits A Risk-based Approach

Authors: Stephen Asbury

2nd Edition

0415508118, 978-0415508117

More Books

Students also viewed these Accounting questions

Question

using signal flow graph

Answered: 1 week ago

Question

The Nature of Nonverbal Communication

Answered: 1 week ago

Question

Functions of Nonverbal Communication

Answered: 1 week ago

Question

Nonverbal Communication Codes

Answered: 1 week ago