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ATB-3 11. Colow Manufacturing purchased 100% of Hill Ine common stock for of Hill had stockholders' equity consisting of $400,000 of common sto retained earnings

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ATB-3 11. Colow Manufacturing purchased 100% of Hill Ine common stock for of Hill had stockholders' equity consisting of $400,000 of common sto retained earnings in the consolidated balance sheet Coles investment in Hill will be shown at b5700.000 C $400.000 d$800,000 12. Thirty $1,000 bonds with a carrying value of $38,400 are converted into 3,000 shares 3 par value common steek Thaimman khadam value of 59 per S C on the date of conversion. The entry to record the conversion is a. Bonds Payable... 38,400 Common Stock ... 15,000 Paid-in Capital in Excess of Par... 23.400 b. 30.000 8.400 Bonds Payable Premium on Bonds Payable ... Common Stock ... Paid-in Capital in Excess of Par ..... 27.000 11,400 C 30.000 8.400 Bonds Payable ..... Premium on Bonds Payable .... Common Stock Paid-in Capital in FXOss of Par....... 15,000 23.400 d. 38,400 Bonds Payable Common Stock .... Paid-in Capital in Excess of Par.. 27,000 11.400 PARTI-LONG-TERM STOCK INVESTMENTS (20 points) 1. Horne Corporation purchased 3,000 shares of Flynn Company's common stock for $12 per share as a long-term available for sale investment on June 30, 2010. Flynn declared and paid a cash dividend of $1.00 per share on its common stock on September 30, and had a closing fair value of $18 per share on December 31. Assuming this investment is appropriately accounted for using the fair value method, it will increase Horne's 2010 income before taxes by 2. Logan Inc. purchased 30% of the outstanding common stock of Yates Industries on January 1, 2010 for $180,000. Yates reported net income of $70,000 for 2010 and declared and paid cash dividends on common stock of $30,000. The amount of Logan's investment in Yates on December 31, 2010 should be ATB-3 11. Colow Manufacturing purchased 100% of Hill Ine common stock for of Hill had stockholders' equity consisting of $400,000 of common sto retained earnings in the consolidated balance sheet Coles investment in Hill will be shown at b5700.000 C $400.000 d$800,000 12. Thirty $1,000 bonds with a carrying value of $38,400 are converted into 3,000 shares 3 par value common steek Thaimman khadam value of 59 per S C on the date of conversion. The entry to record the conversion is a. Bonds Payable... 38,400 Common Stock ... 15,000 Paid-in Capital in Excess of Par... 23.400 b. 30.000 8.400 Bonds Payable Premium on Bonds Payable ... Common Stock ... Paid-in Capital in Excess of Par ..... 27.000 11,400 C 30.000 8.400 Bonds Payable ..... Premium on Bonds Payable .... Common Stock Paid-in Capital in FXOss of Par....... 15,000 23.400 d. 38,400 Bonds Payable Common Stock .... Paid-in Capital in Excess of Par.. 27,000 11.400 PARTI-LONG-TERM STOCK INVESTMENTS (20 points) 1. Horne Corporation purchased 3,000 shares of Flynn Company's common stock for $12 per share as a long-term available for sale investment on June 30, 2010. Flynn declared and paid a cash dividend of $1.00 per share on its common stock on September 30, and had a closing fair value of $18 per share on December 31. Assuming this investment is appropriately accounted for using the fair value method, it will increase Horne's 2010 income before taxes by 2. Logan Inc. purchased 30% of the outstanding common stock of Yates Industries on January 1, 2010 for $180,000. Yates reported net income of $70,000 for 2010 and declared and paid cash dividends on common stock of $30,000. The amount of Logan's investment in Yates on December 31, 2010 should be

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