Control alt design acquired 30 of the outstanding common

Assignment Help Accounting Basics

Reference no: EM13567234

Control Alt Design acquired 30% of the outstanding common stock of Walter Company on January 1, 2012, by paying $800,000 for the 45,000 shares. Walter declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2012. Walter reported net income of $320,000 for the year. At December 31, 2012, the market price of Walter common stock was $24 per share.

(a) Prepare the journal entries for Control Alt Design for 2012 assuming Control Alt Design cannot exercise significant influence over Walter.(b) Prepare the journal entries for Control Alt Design for 2012, assuming Control Alt Design can exercise significant influence over Walter. Use the equity method. (c) Indicate the balance sheet and income statement account balances at December 31, 2012, under each method of accounting.

Reference no: EM13567234

Questions Cloud

Depreciation on the companys equipment for 2011 is computed : depreciation on the companys equipment for 2011 is computed to be 14000. b. the prepaid insurance account had a 5000

Dividends of 225 per share was paid yesterday stock is : dividends of 2.25 per share was paid yesterday. stock is currently sellong for 60 per share. required rate of return

If the new equipment is purchased the present value of the : carlson manufacturing has some equipment that needs to be rebuilt or replaced. the following information has been

You began the pre-writing step for a report for your boss : you began the pre-writing step for a report for your boss on richard hackmans statement that using a team to complete a

Control alt design acquired 30 of the outstanding common : control alt design acquired 30 of the outstanding common stock of walter company on january 1 2012 by paying 800000 for

Grant hillside homes inc has preferred stock outstanding : grant hillside homes inc. has preferred stock outstanding that pays an annual dividend of 9.80. its price is 110. what

During the second week the materials usage variance was : manzana company produces apple juice sold in gallons. recently the company adopted the following material standard for

Explain why the present value of a cash flow stream and : explain why the present value of a cash flow stream and the asset associated there with fluctuate in value with the

The yeptal corporations last dividend was 200 the dividend : the yeptal corporations last dividend was 2.00. the dividend growth rate is expected to be constant at 25 for 3 years

User Account

All Pages