Prepare all equity method entries

Assignment Help Accounting Basics
Reference no: EM133188609

Question - Chastain, Inc. bought 40% of Joyner Company on January 1, 2020, for $400,000. The equity method was used. No amortization was required. In 2020, Joyner shipped to Chastain merchandise with a cost of $25,000 and a selling price of $30,000. One-fourth of the merchandise remained in Chastain's inventory at year-end and was sold in 2021. In 2021, Joyner received merchandise from Chastain, who recorded a gross profit of $20,000 on the sale. One-third of the merchandise remained in ending inventory. Joyner reported a net income of $60,000 in 2020 and $80,000 in 2021. Dividends of $10,000 were paid to Chastain each year.

Required - Prepare all equity method entries for 2020 and 2021.

Reference no: EM133188609

Questions Cloud

Calculate the total amount to be remitted : Calculate the total amount to be remitted to the Canada Revenue Agency for the October 15th pay date. When would the October 15th CRA remittance be due
Java console program assessment : Demonstrate you can use Java constructs including input/output via a command line, Java primitive and built-in data types, Java defined objects, selection
What are earnings before interest and taxes : San Antonio Boots Inc. had sales of $10,000 in 2015. The cost of goods sold was $5,000, What are earnings before interest and taxes
Difference between wto and trade unions : The Southern Common Market, MERCOSUR, United States, Mexico, & Canada Agreement ,USMCA and The Association of Southeast Asian Nations,ASEAN
Prepare all equity method entries : Chastain, who recorded a gross profit of $20,000 on the sale. Prepare all equity method entries for 2020 and 2021
Link between john lewis and earlier theory of motivation : Considering the Goal-setting theory, how do you think this partnership structure will affect the setting and achievement of challenging individual goals
Compute the net impact on company c profit : The transfer price for the polymer has been set at $45 per litre. Compute the net impact on Company C's profit if the transfer price is set at the rate by plant
What other qualitative factors would you recommend : What other qualitative factors would you recommend that Frontier managers consider before making a decision? Describe at least 4 factors
What is the yield to maturity of the bond : The spot rate of a bond for three years is respectively 4%, 6% and 7% and a redeeming value of Rs 990. What is the yield to maturity of the bond

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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