Exercise 17-12.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Presented below are two independent situations.Situation 1Hatcher Cosmetics acquired 10% of the 215,000 shares of common stock of Ramirez Fashion at a total cost of $16 per share on March 18, 2012. On June 30, Ramirez declared and paid a $77,400 cash dividend. On December 31, Ramirez reported net income of $130,400 for the year. At December 31, the market price of Ramirez Fashion was $18 per share. The securities are classified as available-for-sale.Situation 2Holmes, Inc. obtained significant influence over Nadal Corporation by buying 27% of Nadalâs 31,300 outstanding shares of common stock at a total cost of $10 per share on January 1, 2012. On June 15, Nadal declared and paid a cash dividend of $36,300. On December 31, Nadal reported a net income of $89,600 for the year.Prepare all necessary journal entries in 2012 for both situations.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditHatcher CosmeticsMarch 18, 2012.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>June 30, 2012.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Dec. 31, 2012.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Holmes Inc.Jan. 1, 2012.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>June 15, 2012.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Dec. 31, 2012.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Problem 17-3.png” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Cardinal Paz Corp. carries an account in its general ledger called Investments, which contained debits for investment purchases, and no credits, with the following descriptions.Feb. 1, 2012Sharapova Company common stock, $100 par, 200 shares$41,500April 1U.S. government bonds, 10%, due April 1, 2022, interest payable April 1 and October 1, 112 bonds of $1,000 par each112,000July 1McGrath Company 12% bonds, par $53,600, dated March 1, 2012, purchased at 104 plus accrued interest, interest payable annually on March 1, due March 1, 203257,888(a)Prepare entries necessary to classify the amounts into proper accounts, assuming that all the securities are classified as available-for-sale.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>(b)Prepare the entry to record the accrued interest and the amortization of premium on December 31, 2012, using the straight-line method.(Round answers to 0 decimal places, e.g. $2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>(c)The fair values of the investments on December 31, 2012, were:Sharapova Company common stock$33,070U.S. government bonds147,900McGrath Company bonds58,620What entry or entries, if any, would you recommend be made?(Round answers to 0 decimal places, e.g. $2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>(d)The U.S. government bonds were sold on July 1, 2013, for $120,650 plus accrued interest. Give the proper entry.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>Brooks Corp. is a medium-sized corporation specializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a 70% market penetration. During prosperous years, the companyâs profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Brooks has had a policy of investing idle cash in equity securities. In particular, Brooks has made periodic investments in the companyâs principal supplier, Norton Industries. Although the firm currently owns 12% of the outstanding common stock of Norton Industries, Brooks does not have significant influence over the operations of Norton Industries.Cheryl Thomas has recently joined Brooks as assistant controller, and her first assignment is to prepare the 2012 year-end adjusting entries for the accounts that are valued by the âfair valueâ rule for financial reporting purposes. Thomas has gathered the following information about Brooksâs pertinent accounts.1.Brooks has trading securities related to Delaney Motors and Patrick Electric. During this fiscal year, Brooks purchased 100,000 shares of Delaney Motors for $1,400,000; these shares currently have a market value of $1,600,000. Brooksâ investment in Patrick Electric has not been profitable; the company acquired 50,000 shares of Patrick in April 2012 at $20 per share, a purchase that currently has a value of $720,000.2.Prior to 2012, Brooks invested $22,500,000 in Norton Industries and has not changed its holdings this year. This investment in Norton Industries was valued at $21,500,000 on December 31, 2011. Brooksâ 12% ownership of Norton Industries has a current market value of $22,225,000.For both classes of securities presented above, describe how the results of the valuation adjustments made to reflect the application of the âfair valueâ rule would be reflected in the body of and notes to Brooksâ 2012 financial statements. (Refer to Problem 17-8.)
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.