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- Fill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Nash's Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Swifty Company. 1. At the beginning of Year 1, Nash's bought 30% of Swifty's common stock at its book value. Total book value of all Swifty's common stock was $720,000 on this date. 2. (a) During Year 1, Swifty reported $50,000 of net income. (b) During Year 1, Swifty paid $28,000 of dividends. 3. (a) During Year 2, Swifty reported $25,000 of net income. (b) During Year 2, Swifty paid $18,000 of dividends. 4. (a) During Year 3, Swifty reported a net loss of $8,000. (b) During Year 3, Swifty paid $3,500 of dividends. 5. Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.What is Adams’s January 1, 2024, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the: Equity value method. Initial value method. What worksheet adjustment to Adams’s January 1, 2024, Retained Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method? Prepare the worksheet entry to eliminate Clay’s stockholders’ equity. What is consolidated net income for 2024?Q16)Which accounting concept specifies the practice of crediting closing stock to the trading account a) Cost b) Realisation c)Cloing concem d)Matching expendeure Q17) Ammnt spent to increasing the coming capacity is a a) Capital b) Revenue ch Defened revenus d) Capital Loss Q18) Change in the capital Ale of proprietor may occur due to a) Prufit carmed b) Less incurred c) Capital Introduced d) All of the above
- MCQs, Just required correct answers. 1- If the prepaid expenses of the company has increased by 25% as compared to previous year. It was because the company has taken __________________ financial management decision.a. Investment Decisionb. Assets Management Decisionc. Financing Decisiond. Both (a) and (c) 2- Which of the following is NOT considered as a characteristic of preferred stock?a. Fix dividendb. Owners of the businessc. No voting rightd. Residual claim 3- Which of the following DOES NOT belong to a private limited company?a. Articles of Associationb. Memorandum of Associationc. Certificate of incorporationd. Certificate of commencement of business 4- Which of the following is NOT the characteristic of Over the Counter Markets?a. Network of dealers’b. No physical Existencec. Regulated Under SECPd. Unlisted SecuritiesFill in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Ayayai Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Sunland Company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.) (a) Fair Value Method (b) Equity Method Transaction Investment Account Dividend Revenue Investment Account Investment Revenue 1. At the beginning of Year 1, Ayayai bought 30% of Sunland's common stock at its book value. Total book value of all Sunland's common stock was $760,000 on this date. 2. (a) During Year 1, Sunland reported $52,000 of net income. (b) During Year 1, Sunland paid $28,500 of dividends. 3. (a) During Year 2, Sunland reported…Perez Company paid a $640 cash dividend. Which of the following accurately reflects how this event affects the company's financial statements? Balance Sheet Income Statement Statement of Cash Flows Assets = Liabilities + Stockholders’ Equity Revenue − Expense = Net Income A n/a 640 (640) n/a 640 (640) n/a B (640) n/a (640) n/a 640 (640) (640) FA C (640) n/a (640) n/a n/a n/a (640) FA D (640) n/a (640) n/a n/a n/a (640) OA Multiple Choice Option A Option C Option B Option D
- which one is correct answer? Q30: ____ determines the ultimate distribution of the firm’s earnings between reinvestment and cash dividend payment to shareholders. a. Financial expertise b. Board of Directors’ agreements c. Dividend policy d. Management efficiencyAngela Corporation has the following selected assets and liabilities: Given the said data, determine the company’s net working capital. (check the photo) Choose the letter of correct answer a. P35,000.00b. P39,000.00c. P33,000.00d. P72,000.00e. P52,000.00The following information is about Green Tea Ltd. Year Net income ($’000 000) Beginning book value of equity ($’000 000) 1 32 42 2 28 39 3 44 47 Required: Calculate Equity value using discounted abnormal earnings valuation method. The cost of capitalis 10%.
- a.Prepare the related journal entries of the debt investment for the year 2018. b.Prepare journal entries to record the purchase, the fair value adjustment and the selling of investment in Gemilang Bhd. c. Prepare journal entries to record the purchase, the dividend received and the fair value adjustment of investment in Harmoni Bhd. d.Explain FOUR (4) reasons why companies can use the financial assets to sustain the business during the COVID-19 pandemic.Please do not provide answer in image formate thnak you. 1. Compute the net profit margin, total asset turnover, return on total assets, and return on common stockholders’ equity for both companies. 2. Assume each company paid a cash dividend of $1.50 per share and that each company’s stock can be purchased at $25 a share. Compute each company’s price earnings ratio and dividend yield. 3. Identify which company’s stock you would recommend as the better investment and explain why.#60 Santo Corporation declares and distributes a cash dividend that is a result of current earnings. How will the receipt of those dividends affect the investment account of the investor under each of the following accounting methods? Fair Value Method Equity Method Question 60 options: a No Effect Decrease b Increase Decrease c Decrease No Effect d No Effect No Effect