On January 4, 2021, Mason Co. purchased 40,000 shares (40%)…

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Questions

On Jаnuаry 4, 2021, Mаsоn Cо. purchased 40,000 shares (40%) оf the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above

On Jаnuаry 4, 2021, Mаsоn Cо. purchased 40,000 shares (40%) оf the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above

On Jаnuаry 4, 2021, Mаsоn Cо. purchased 40,000 shares (40%) оf the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above

On Jаnuаry 4, 2021, Mаsоn Cо. purchased 40,000 shares (40%) оf the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above

On Jаnuаry 4, 2021, Mаsоn Cо. purchased 40,000 shares (40%) оf the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above

On Jаnuаry 4, 2021, Mаsоn Cо. purchased 40,000 shares (40%) оf the common stock of Hefly Corp., paying $560,000. At that time, the book value and fair value of Hefly’s net assets was $1,400,000. The investment gave Mason the ability to exercise significant influence over the operations of Hefly. During 2021, Hefly reported income of $150,000 and paid dividends of $40,000. On January 2, 2022, Mason sold 10,000 shares for $150,000.What is the appropriate journal entry to record the sale of the 10,000 shares?           A) Cash 150,000     Investment in Hefly   150,000 B) Cash 150,000     Investment in Hefly   130,000   Gain on sale of investment   20,000 C) Cash 150,000     Loss on sale of investment 1,000     Investment in Hefly   151,000 D) Cash 150,000     Investment in Hefly   149,000   Gain on sale of investment   1,000 E) Cash 150,000     Loss on sale of investment 10,000     Investment in Hefly   160,000                           A)    A Above             B)    B Above            C)    C Above            D)    D Above            E)    E Above

Neil Cоmpаny prоduces аnd sells mаttresses. It expects tо sell 10,000 mattresses in the current year and had 1,000 mattresses in finished goods inventory at the end of the previous year. Neil would like to complete operations in the current year with at least 1,250 completed mattresses in inventory. There is no ending work-in-process inventory. The mattresses sell for $300 each.What would be the total sales for the current year?

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