Prepare all the necessary journal entries

Assignment Help Financial Accounting

Reference no: EM13953567

On January 1, 2015 Kardashian Company purchased 100 of the 1000 shares of West Company for $40,000. At this time all of West's assets fair market values approximated their book value. With this 10% ownership, Kardashian was unable to have a significant influence over West. In 2015, West reported income of $10,000; and paid a dividend of $2000. On December 31, West's stock was selling for $425 per share. On January 1, 2016 Kardashian Company purchased another 200 shares of West Company for $85000. With this additional purchase, Kardashian now has significant influence over West. At the time of purchase, any excess of market price over the value of West's assets was attributable to goodwill. In 2016 West reported a profit of $4000 and paid a dividend of $1000. On December 31, 2016; West's stock is selling for $435 per share. In 2017 West company reported a loss of $2000 and paid a dividend of $800. On December 31, 2017 West's stock was selling for $390 per share. On January 5th 2018 Kardashian sold its entire investment in West for $404 per share.

REQUIRED:

PREPARE ALL THE NECESSARY JOURNAL ENTRIES FOR KARDASHIAN DUE TO ITS INVESTMENT IN WEST FOR A) 2015 B) 2016 C) 2017 D) 2018.

Reference no: EM13953567

Questions Cloud

Applying the cost of goods sold model : Applying the Cost of Goods Sold Model

Yoda company purchased all the stock of vadar company : Yoda Company purchased all the stock of Vadar Company at book value. On October 31st 2015 Yoda sold inventory to Vadar on account. The inventory had cost Yoda $50,000 and it was sold to Vadar for $90,000.

Grosseiller corporation uses the weighted : Grosseiller Corporation uses the weighted-average method in its process costing system.

Prepare the first-stage allocation of costs to the activity : Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned

Prepare all the necessary journal entries : Kardashian Company purchased 100 of the 1000 shares of West Company for $40,000. At this time all of West's assets fair market values approximated their book value. With this 10% ownership, Kardashian was unable to have a significant influence over W..

Difference between maintenance and processing : Explain the difference between maintenance and processing transactions for the sale and collection cycle. which of the two is done first?

Construct the probability distribution for x. : The time required for a modem to dial an internet provider before connecting

Calculate the cost for the alternative : Identify two more feasible alternatives. For each feasible alternative you identify, calculate the cost for the alternative and then identify whether these alternatives yield better costs when compared to the three alternatives given in the textbo..

Problem regarding the retainer fees as sales : Bunch o' Balloons markets balloon arrangements to companies that want to thank clients and employees. Bunch o' Balloons has a unique style that has put it in high demand.

User Account

All Pages