ACC 557 Week 8, Chapter 12 (E12-7, E12-8, E12-12, P12-2A) Wiley Plus - Graded 100%.doc

ACC 557 Week 8, Chapter 12 (E12-7, E12-8, E12-12, P12-2A) Wiley Plus - Graded 100%.doc ACC 557 Week 8 Chapter 12 (E12-7, E12-8, E12-12, P12-2A) NEW ACC 557 Week 8 Chapter 12 (E12-7, E12-8, E12-12, P12-2A) E12-7: On January 1, Vince Corporation purchased a 25% equity in Morelli Corporation for $180,000. At December 31, Morelli declared and paid a $60,000 cash dividend and reported net income of $200,000. ............ a) Journalize the transactions. ............ b) Determine the amount to be reported as an investment in Morelli stock at December 31. ............ E12-8: Presented below are two independent situations. ............ Prepare all the necessary journal entries for 2014 for (a) Chicory Cosmetics and (b) Frank, Inc. ............ E12-12: Zippydah Company has the following data at December 31, 2014. The non-trading securities are held as a long-term investment. ............ a) Prepare the adjusting entries to report 1. Trading securities at fair value and 2. Non-trading securities at fair value. ............ b) Indicate the statement presentation of each class of securities. ............ P12-2A : In January 2014, the management of Stefan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. ............ At December 31, the fair value of the Superior common stock was $55 per share. The fair value of the Pawlik common stock was $24 per share. ............ a) Journalize the transactions and post to the accounts Debt Investments and Stock Investments. ............ b) Prepare the adjusting entry at December 31, 2014, to report the investment securities at fair value. All securities are considered to be trading securities. ............ c) Show the balance sheet presentation of investment securities at December 31, 2014. ............ d) Give the statement classification of each income statement account. ............