Lee Company has 100,000 shares of common stock ($1 par) issued and outstanding. On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $15 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020. Upon declaration of the stock dividend, Lee Company should record:
Read DetailsWaystar, Inc. purchased a 40% interest in Royco, Inc. for $200,000 on January 1, 2021, obtaining significant influence. Both companies have fiscal years ending December 31. Royco reported a net income of $10,000 for the year ending December 31, 2021, and declared and paid total cash dividends of $8,000 on December 31, 2021. The fair value of this investment as of December 31, 2021, was $190,000. Assuming this is the only equity investment that Waystar has, what is the balance for their equity investment account on December 31, 2021?
Read DetailsThe following information pertains to Ryker Corp.’s available-for-sale securities (AFS):December 31, Year 1Amortized Cost$75,000Fair Value$175,000Based on the information above, what journal entry should be made on December 31, Year 1?
Read DetailsThe company manufactures high-end whole-home electronic systems and provides a one-year warranty for all products sold. The company estimates that the warranty cost is $300 per unit sold and reported a liability for estimated warranty costs of $10.4 million on January 1, 2020. If the company sold 60,000 units for a total of $324 million during the year and paid warranty claims of $12,000,000 on current and prior year sales, what amount of liability for estimated warranty costs should the company report on its balance sheet on December 31, 2020?
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