Reference no: EM131013066
Prepare the following journal entries. Be sure all dates agree with the problem and are not today's date.
Cost method:
Year 2014
Jan 1 Investor corporations purchased 8,000 shares (20% of investee company's outstanding stock) at a cost of $ 150,000.
May 31 Investee company declared and paid a cash dividends of $1.50 per share
Dec 31 Investee company announced that its net income for the year was $100,000 Cost method
Year 2015
Oct 1 Investee company declared and paid a cash dividend of $1.00 per share
Dec 21 Investee company announced its net income for the year in the amount of $ 80,000
Dec 31 Investor corporation sold all of its shares on investee company for $ 178,000 cash
Equity method
Year 2016
Jan 1 Investor corporations purchased 8,000 shares (20% of investee company's outstanding stock) at a cost of $ 150,000.
May 31 Investee company declared and paid a cash dividends of $1.50 per share
Dec 31 Investee company announced that its net income for the year was $100,000
Year 2017
Oct 1 Investee company declared and paid a cash dividend of $1.00 per share
Dec 21 Investee company announced its net income for the year in the amount of $ 80,000
Dec 31 Investor corporation sold all of its shares on investee company for $ 178,000 cash Required: Cost method:
Prepare journal entries for years 2014 and 2015 using the cost method, which assumes that investor does not have significant influence over Investee (for example, another corporation owns 70% of Investee Company's stock). Equity method: Prepare journal entries for years 2016 to 2017 on Investor Corporation's books using the equity method, which assumes that Investor has significant influence over Investee Company.
|
Spartan corporation redeemed 25 percent
: Spartan Corporation redeemed 25 percent of its shares for $3,300 on July 1 of this year, in a transaction that qualified as an exchange under §302(a).
|
|
Explain the limitations of flexural stress formula
: A beam is loaded and supported as shown in Figure 2. The cross-section of the beam is also shown in Figure 1. Draw neatly the shear force and bending moment diagrams for the beam. Find the locations of maximum shear and bending moment in the beam
|
|
Creating a presentation on how to make a certain recipe
: Develop a 4- to 5-slide PowerPoint presentation that includes the components and features in the following list (at a minimum). Use the content from your Word assignment to develop a PowerPoint presentation. Have you ever thought of creating a presen..
|
|
A query that displays the first eight characters of the empl
: Given a table definition: Employees(employee_id, first_name, last_name, salary, manager_id, hire_date, commission_pct, department_id)
|
|
Investee company declared and paid a cash dividends
: Dec 31 Investor corporation sold all of its shares on investee company for $ 178,000 cash Required: Cost method:
|
|
Influence the future of the web
: Assess the practical uses of jQuery and HTML and the future of these topics. Evaluate the effect they may have in influencing the future of the Web.
|
|
Convert the following c program to mips program
: Convert the following C program to MIPS program. Assuming that i, j, k, f, are stored in registers $s0, $s1, $s2, $s3 already. 1) f = i + j + k +1; 2) f = i - 2;
|
|
Evaluate the three choices for staffing the center
: Explain what you believe the salary budget differences will be by selecting your approach as compared to the other two approaches.
|
|
Develop a frequency distribution
: An executive's telephone log showed the following data for the length of 30 calls initiated during a day. Develop a frequency distribution
|