Question 8 Sheridan Company owns 20% interest in the stock of Pharoah Corporation. During the...
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Question 8 Sheridan Company owns 20% interest in the stock of Pharoah Corporation. During the year, Pharoah pays $24900 in dividends, and reports $208000 in net income. Sheridan Company's investment in Pharoah will increase by O $41600. O $24900. O $46580. O $36620. Question 9 On January 1, 2017, Swifty Company purchased at face value, a $1140, 5% bond that pays interest on January 1. Swifty Company has a calendar year end. The adjusting entry on December 31, 2017, is O Interest Receivable 57 Interest Revenue 57 O Cash 57 Interest Revenue 57 O Interest Receivable 57 Debt Investments 57 O not required Question 1o On January 1, Sheridan Company purchased as a short-term investment a $2600, 8% bond for $2600. The bond pays interest on January 1. The bond is sold on July 1 for $2780 plus accrued interest. Interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bond is sold? Cash 2884 2780 Debt Investments Interest Revenue 104 Cash 2780 Debt Investments 2780 Cash 2780 Debt Investments 2600 Gain on Sale of Debt Investments 180 Cash 2884 2600 Debt Investments Gain on Sale of Debt 180 Investments Interest Revenue 104
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