Holmes inc obtained significant influence over nadal

Assignment Help Accounting Basics

Reference no: EM13567766

Situation 1
Hatcher Cosmetics acquired 10% of the 212,200 shares of common stock of Ramirez Fashion at a total cost of $14 per share on March 18, 2012. On June 30, Ramirez declared and paid a $77,800 cash dividend. On December 31, Ramirez reported net income of $124,900 for the year. At December 31, the market price of Ramirez Fashion was $15 per share. The securities are classified as available-for-sale.

Situation 2
Holmes, Inc. obtained significant influence over Nadal Corporation by buying 27% of Nadal's 32,100 outstanding shares of common stock at a total cost of $9 per share on January 1, 2012. On June 15, Nadal declared and paid a cash dividend of $45,300. On December 31, Nadal reported a net income of $90,400 for the year.

Prepare all necessary journal entries in 2012 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM13567766

Questions Cloud

Last year she earned 45000 as a sales assistant for focused : mary watson is 24 years old and single lives in an apartment and has no dependents. last year she earned 45000 as a

An investor bought a one-acre lot on the outskirts of a : an investor bought a one-acre lot on the outskirts of a city for 9000 cash. each year she paid 80 of property taxes .

A corporation with both preferred stock and common stock : a corporation with both preferred stock and common stock outstanding has a substantial credit balance in its retained

Rust bucket motor credit corporation rbmcc a subsidiary of : rust bucket motor credit corporation rbmcc a subsidiary of rust bucket motor offered some securities for sale to the

Holmes inc obtained significant influence over nadal : situation 1hatcher cosmetics acquired 10 of the 212200 shares of common stock of ramirez fashion at a total cost of 14

What is the difference between the straight-line and : what is the difference between the straight-line and reducing-balance methods of

Loreal-amerfcan corporation purchased several marketable : loreal-amerfcan corporation purchased several marketable securities during 2013. at december 31 2013 the company had

Fomtech inc had net income of 750000 based on variable : fomtech inc. had net income of 750000 based on variable costing. beginning and ending inventories were 50000 units and

The market price of the stock was 4 per share 2014 jan 5 : rantzow-lear company buys and sells securities expecting to earn profits on short-term differences in price. the

User Account

All Pages