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elena-s [515]
2 years ago
12

Sheridan Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2160 shares of Ayayai Company (10%) fo

r $55080 cash. June 1 Received cash dividends of $2 per share on Ayayai stock. Oct. 1 Sold 1170 shares of Ayayai stock for $31590. The entry to record the purchase of the Ayayai stock would include a debit to Stock Investments for $49572. debit to Investment Expense for $5508. debit to Stock Investments for $55080. credit to Cash for $49572.
Business
1 answer:
SCORPION-xisa [38]2 years ago
6 0

Answer: debit to Stock Investments for $55,080.

Explanation:

As this is an investment in another company, it will count as an asset which means that when it increases, the account will have to be debited. It will therefore be debited for $55,080 to show the investment.

Cash will decrease by the same amount which means that it will have to be credited because assets are credited when they decrease.

Dr Stock Investments      $55,080

Cr Cash                                               $55,080

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Assume that, on January 1, 2021, Matsui Co. paid $1,795,200 for its investment in 74,800 shares of Yankee Inc. Further, assume t
mixas84 [53]

Answer: $1,852,320

Explanation:

First find out the proportion owned by Matsui.

= 74,800 shares / 220,000

= 34%

The investment at the end of the year is:

= Cost of investment + Shares of net income - Share of dividend

Share of income:

= Percentage ownership * Net income

= 34% * 240,000

= $81,600

Share of dividend:

= 34% * 72,000

= $24,480

Investment at end of year:

= 1,795,200 + 81,600 - 24,480

= $1,852,320

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3 years ago
Why is it important to be fiscally responsible?
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2 years ago
ABC Co. purchased equipment for $72,000 on January 1, 2017. The equipment is expected to have a five-year life and a residual va
Korvikt [17]

Answer:

Depreciation expense for 2017: $26,400

The book value of the equipment at December 31, 2017: $45,600

Explanation:

Under the straight-line method, useful life is 5 years, so the asset's annual depreciation will be 20% of the Depreciable cost.

Depreciable cost = Total cost of the equipment - Residual value =  $72,000 - $6,000 = $66,000

Under the double-declining-balance method the 20% straight line rate is doubled to 40% - multiplied times the Depreciable cost's book value at the beginning of the year.

Depreciation expense for 2017 = 40% x $66,000 = $26,400

Accumulated depreciation at December 31, 2017 = $26,400

Book value of the equipment at December 31, 2017 = Cost of the equipment - Accumulated depreciation at December 31, 2017 = $72,000 - $26,400 = $45,600

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2 years ago
According to theory, sales employees compensated based on commissions should be more motivated than if paid a straight hourly wa
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Answer:

Expectancy Theory

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The expectancy theory basically talks about how individuals will behave or react in a certain way because they are motivated and as a result choose to act in accordance or react to specific situations due to what they expect the results to be.

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3 years ago
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Which terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?
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Answer: Agency problem

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Agency problem  is the issue rises when the agents fails to display appropriate interest of principles.This interest conflict usually occurs between the organisation's stakeholder and management.

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2 years ago
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