User Account

All Pages

Make the appropriate journal entries from the purchase

Assignment Help Financial Accounting
Reference no: EM132934366

As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 580,000 shares for $660,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $430,000 and distributed cash dividends of 35 cents per share. At year-end, the fair value of the shares is $703,000.

Problem 1: Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

Reference no: EM132934366

Questions Cloud

Draw a rough sketch of the flows of imports and exports : Suppose we extend the circular flow model to add imports. Draw a rough sketch of the flows of imports, exports, and the payments for each on your diagram.
Define earnings management : Define earnings management Do you consider it to be good or bad and Explain and discuss what is meant by the positive accounting theory
Which the operating cash flow decreases when : Which the operating cash flow decreases when? cash is used to reduce accounts payable./ new shares of stock are sold for cash.
What is the percentage change : What is the percentage change from 2020 to 2021? What is the percentage change from 2021 to 2022? Be sure to indicate whether the percentage change.
Make the appropriate journal entries from the purchase : Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.
Find what should be done to reconcile the bank statement : Bank inadvertently charged JBR bank account for RST company's bank fees. What should be done to reconcile the bank statement?
Do you have any criticisms of historical cost accounting : Develop normative theories often do not share the same views about the roles of their respective approaches to theory construction
Describe an accounting regulation : How might institutional theory explain accounting disclosures and How can positive accounting theory explain corporate social and environmental reporting
What should be done to reconcile the bank statement : The bank collected a Note Receivable for the company and credited the company's bank account. What should be done to reconcile the bank statement?

Reviews

Write a Review

Financial Accounting Questions & Answers

  The transaction to record the cost of the equipment

On January 1, Farmington Bakery Co. purchased baking equipment for $150,000 from AM Manufacturing for a new location they are opening. Installation cost $1,500. Once installed, Farmington purchased a six-month equipment insurance policy for $600 to c..

  Compute for the gain on exchange to be recognized

Uranus Company owns 8,000 convertible preference shares, Compute for the gain on exchange to be recognized in 2018. Give the journal entry on March 31, 2018.

  What is the net income

Question - Net cash flow for operating activities for 2021 was 490,000. Depreciation and amortization $29,700. What is the net income

  Why does it make sense that the ask yield is reported

The asked yield is the investment yield corresponding to the dealer’s asked price. Why does it make sense that the ask yield is reported, rather than the bid yield? ?

  What are financial futures contracts

What are financial futures contracts? Which banks and other financial institutions use futures and other derivatives for risk management?

  Pcaob issued order formally barring two former

Facts: On August 1, 2011, the PCAOB issued order formally barring two former Ernst & Young auditors from future audits of public companies. Peter C. O’Toole and Darrin G. Estella, as partner and senior manager for a public company audit, respectively..

  Record the necessary closing entries

Record the necessary closing entries. The year-end adjusted trial balance of Aggies Corporation included the following account balance

  How many liters were started and completed during the period

The Mountain Springs Water Company has two departments, purifying and bottling. The bottling department received 67,000 liters from the purifying department. During the period, the bottling department completed 65,000 liters, including 3,000 liters o..

  Prepare journal entry

Doggy paradise, llc has one employee, who earned 2,100 in September with gross pay through august of 10,000.

  Calculate dividend yield and capital gains yield for years

What is the stock's required rate of return? Assume the market is in equilibrium with the required return equal to the expected return.

  Difference between price-sales and price-earnings ratio

Question - What is the difference between price-sales ratio and price-earnings ratio? Which one is better for investment valuation

  Accounting for income taxes and losses

Compare and contrast the key similarities and differences between GAAP and IFRS with respect to income tax accounting. Analyze two (2) tax differences and determine which difference would provide the greatest tax benefit to a corporation. Write a bri..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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