Question
Q1: How much is received as dividends on 11/1/22? Q2: What is the TOTAL unrealized gain or loss at 12/31/22? (Not the 12/31/22 adjusting entry,
Q1: How much is received as dividends on 11/1/22?
Q2: What is the TOTAL unrealized gain or loss at 12/31/22? (Not the 12/31/22 adjusting entry, but the overall unrealized gain or loss at the end of the year)
Q3: How much of an unrealized gain or loss is reported on the 2022 statement of comprehensive income? (the amount of the adjusting entry at 12/31/22)
Q4: Assuming that Big uses the FIFO method to account for their "inventory" of Little shares, what is the gain or loss reported on the sale of the shares on 3/1/23? (Be sure to use the EXACT cost of the shares being sold, either a fraction of the total cost of the 5,000 acquired or work the cost per share out to the last decimal place)
Big Co. purchases shares of Little Co starting on 1/1/21. Little Co. has 100,000 shares of stock outstanding. Relevant data shown below: 1/1/21: Purchased 5,000 shares at $18/share, plus $ 10 commission. 11/1/21: Little Co. paid common dividends totaling $10,000 12/31/21: Little Co. stock trading at $20/share 4/1/22: Purchased 6,000 shares at $21/share, plus $10 commission 11/1/22: Little Co. paid dividends totaling $10,000 12/31/22: Little Co stock trading at $19/share 3/1/23: Sold 1,000 shares of Little Co stock at $19.50/share, less $10 commission. Assume Big uses FIFO to account for their investment in these shares. Required: Prepare entries to record the preceding transactions, and answer the following questions. natalilable inconvenientearoadbootStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started