ssessing Financial Statement Effects of Equity Method Securities Use the financial statement effects template to record the following transactions involving investments in marketable securities accounted for using the equity method. a. Purchased 12,000 common shares of Bakersfield Co. at $10 per share; the shares represent 30% ownership in Bakersfield. b. Received a cash dividend of $1.50 per common share from Bakersfield. c. Bakersfield reported annual net income of $75,000. d. Sold all 12,000 common shares of Bakersfield for $128,500. Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset + Assets = Liabilities + Captial + Capital Revenues - Expenses = Net income a. Purchased shares of Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer b. Received cash dividend from Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer c. Bakersfield reported annual net income. Answer Answer Answer Answer Answer Answer Answer Answer d. Sold all Bakersfield shares. Answer Answer Answer Answer Answer Answer Answer Answe
ssessing Financial Statement Effects of Equity Method Securities Use the financial statement effects template to record the following transactions involving investments in marketable securities accounted for using the equity method. a. Purchased 12,000 common shares of Bakersfield Co. at $10 per share; the shares represent 30% ownership in Bakersfield. b. Received a cash dividend of $1.50 per common share from Bakersfield. c. Bakersfield reported annual net income of $75,000. d. Sold all 12,000 common shares of Bakersfield for $128,500. Use negative signs with answers, if appropriate. Balance Sheet Income Statement Noncash Contrib. Earned Transaction Cash Asset + Assets = Liabilities + Captial + Capital Revenues - Expenses = Net income a. Purchased shares of Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer b. Received cash dividend from Bakersfield. Answer Answer Answer Answer Answer Answer Answer Answer c. Bakersfield reported annual net income. Answer Answer Answer Answer Answer Answer Answer Answer d. Sold all Bakersfield shares. Answer Answer Answer Answer Answer Answer Answer Answe
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 21PC
Related questions
Question
Assessing Financial Statement Effects of Equity Method Securities
Use the financial statement effects template to record the following transactions involving investments in marketable securities accounted for using the equity method.
a. Purchased 12,000 common shares of Bakersfield Co. at $10 per share; the shares represent 30% ownership in Bakersfield.
b. Received a cash dividend of $1.50 per common share from Bakersfield.
c. Bakersfield reported annual net income of $75,000.
d. Sold all 12,000 common shares of Bakersfield for $128,500.
Use negative signs with answers, if appropriate.
Income Statement | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Noncash | Contrib. | Earned | |||||||||||||
Transaction | Cash Asset | + | Assets | = | Liabilities | + | Captial | + | Capital | Revenues | - | Expenses | = | Net income | |
a. Purchased shares of Bakersfield. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | |||||||
b. Received cash dividend from Bakersfield. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | |||||||
c. Bakersfield reported annual net income. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer | |||||||
d. Sold all Bakersfield shares. | Answer | Answer | Answer | Answer | Answer | Answer | Answer | Answer |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning