Determine the balance of alpha investment in b

Assignment Help Financial Accounting
Reference no: EM132892379

Alpha Company acquired 20,000 shares of B Company on 1 January 2014 at P12 per share. B Company had 80,000 shares outstanding with a book value of P 800,000. The difference between the book value and the fair value of B Company as of 1 January 2014, is attributable to a broadcast license intangible asset. B Company recorded earnings of P360,000 and P390,000 for 2014 and 2015, respectively, and paid per share dividends of P 1.60 per share in 2014 and P 2.00 in 2015. Assume a 20-year straight-line amortization policy for the broadcast license.

Required:

Question (1) Give the entries to record the purchase in 2014 and reflect Alpha's share of B's earnings and receipt of dividends for 2014 and 2015.

Question (2) Determine the balance of Alpha's Investment in B as of 31 December 2014 and 31 December 2015.

Question (3) Reconcile B Company's stockholders' equity with Alpha's Investment in Beta as of 31 December 2014 and 31 December 2015.

Reference no: EM132892379

Questions Cloud

Compute the sales revenue for the current year : Assuming that the cost of sales is 75% of the sales revenue, the sales revenue for the current year is
Give three ways in which iot has impacted businesses : Give three ways in which IoT has impacted businesses. How do these examples affect your daily life?
Determine the balance of angel investment in sanfer : Give the journal entries made by Angels Company during 2014 related to its investment in Sanfer Company. Determine the balance of Angel Investment in Sanfer
What things make up the internet anyway : Who owns the Internet? What things make up the Internet anyway? Who manages the Internet? Who makes the Internet rules?
Determine the balance of alpha investment in b : Give the entries to record the purchase in 2014 and reflect Alpha's share of B's earnings and receipt of dividends for 2014 and 2015.
Five advantages and disadvantages of using internet : What are the five advantages and disadvantages of using the internet?
Prepare the necessary entry that the moon has to record : Prepare the necessary entry that the moon has to record on December 31, 2019. Assume that Moon already has an old portfolio of other debt investments
Find standard deviation of the estimated returns : Bestbuy Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have
Designing web-based system : If you were designing a Web-based system to make airline reservations and to sell airline tickets, which DBMS Architecture would you choose from Section 2.5?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd