Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Homer Corporation had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Apr11

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Homer Corporation had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Apr11 16 Purchased 5,000 shares of Twist Company stock at $25 per share. July 7 purchased 3,500 shares of Delray Company stock at $50 per share. July 20 purchased 1,600 shares of Arnold Company stock at $17 per share. August 15 Received an $1.20 per share cash dividend on the Twist Company stock. August 28 sold 3,000 shares of Twist Company stock at $28 per share. october 1 Received a $2.80 per share cash dividend on the Delray Company shares. December 15 Recelved a $1,40 per share cash dividend on the renaining Twlst Cospany shares. December 31 Received a $2.20 per share cash dividend on the Delray Company shares. The year-end fair values per share are: Twist Company, $26.00; Delray Company, $48.50; and Arnold Company, $14.00. Calculate the total cost and total fair value of the avallable-for-sale portfollo as of December 31 , and calculate the amount of the required year-end adjusting entry, if any. For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net Income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. April 16 Purchased 5,000 shares of Twist Company stock at $25 per share. July 7 purchased 3,500 shares of Delray Company stock at $50 per share. July 20 Purchased 1,600 shares of Arnold Company stock at $17 per share. August 15 Received an $1.20 per share cash dividend on the Twist Company stock. August 28 sold 3,000 shares of Twist Company stock at $28 per share. October 1 Received a $2.80 per share cash dividend on the Delray Company shares. Docember 15 Received a $1.40 per share cash dividend on the remaining Twist Company shares. December 31 Received a $2.20 per share cash dividend on the Delray Company shares. Prove the accuracy of your responses on the Transaction Analysis tab by selecting the account titles reported on the income statement or as a component of stockholders' equity. Homer Corporation had no short-term investments prior to this year. It had the following transactions this year involving short-term stock investments with insignificant influence. Apr11 16 Purchased 5,000 shares of Twist Company stock at $25 per share. July 7 purchased 3,500 shares of Delray Company stock at $50 per share. July 20 purchased 1,600 shares of Arnold Company stock at $17 per share. August 15 Received an $1.20 per share cash dividend on the Twist Company stock. August 28 sold 3,000 shares of Twist Company stock at $28 per share. october 1 Received a $2.80 per share cash dividend on the Delray Company shares. December 15 Recelved a $1,40 per share cash dividend on the renaining Twlst Cospany shares. December 31 Received a $2.20 per share cash dividend on the Delray Company shares. The year-end fair values per share are: Twist Company, $26.00; Delray Company, $48.50; and Arnold Company, $14.00. Calculate the total cost and total fair value of the avallable-for-sale portfollo as of December 31 , and calculate the amount of the required year-end adjusting entry, if any. For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net Income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. April 16 Purchased 5,000 shares of Twist Company stock at $25 per share. July 7 purchased 3,500 shares of Delray Company stock at $50 per share. July 20 Purchased 1,600 shares of Arnold Company stock at $17 per share. August 15 Received an $1.20 per share cash dividend on the Twist Company stock. August 28 sold 3,000 shares of Twist Company stock at $28 per share. October 1 Received a $2.80 per share cash dividend on the Delray Company shares. Docember 15 Received a $1.40 per share cash dividend on the remaining Twist Company shares. December 31 Received a $2.20 per share cash dividend on the Delray Company shares. Prove the accuracy of your responses on the Transaction Analysis tab by selecting the account titles reported on the income statement or as a component of stockholders' equity

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

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

13th Canadian edition

133405508, 978-0133405507

More Books

Students also viewed these Accounting questions