Reference no: EM13866676
Pancake Corporation saw the potential for vertical integration and purchased a 15% interest in Syrup Corp. on January 1, 2013, for $150,000. At that date, Syrup's stockholders' equity included $200,000 of $10 par value common stock, $300,000 of additional paid in capital, and $500,000 retained earnings. The companies began to work together and realized improved sales by both parties. On December 31, 2014, Pancake paid $250,000 for an additional 20% interest in Syrup Corp. Both of Pancake's investments were made when Syrup's book values equaled their fair values. Syrup's net income and dividends for 2013 and 2014 were as follows:
2013 2014
Net income $220,000 $330,000
Dividends $20,000 $30,000
Part 1: Prepare journal entries for Pancake Corporation to account for its investment in Syrup Corporation for 2013 and 2014.
Part 2: Calculate the balance of Pancake's investment in Syrup at December 31, 2014
|
Do you think they deserved the sentenced they got
: What do you think could have been done to prevent these "kids" from becoming convicted felons? Do you think they deserved the sentenced they got
|
|
What is the gross profit percentage for hotel
: What is the gross profit percentage for a hotel, if the total revenue consisted of rooms revenue $3,075,975 and F&B revenue $943,425? management fees represented 4% of total revenue; rent, property taxes & insurance were $401,940; interest and deprec..
|
|
What do you think the juvenile corrections system will look
: Based on the current attitudes toward juvenile offenders, what do you think the juvenile corrections system will look like in 20 years
|
|
What is the level of sophistication
: According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. What is the level of sophistication that the Board assumes about the users of financ..
|
|
Prepare journal entries for pancake corporation to account
: Pancake Corporation saw the potential for vertical integration and purchased a 15% interest in Syrup Corp. on January 1, 2013, for $150,000. Prepare journal entries for Pancake Corporation to account for its investment in Syrup Corporation for 2013 a..
|
|
Determine the direct labor costs-work in process inventory
: Cost of goods sold for 2015 totaled $1,200,000 and total manufacturing costs incurred during the year were $1,240,000. Determine (a) the direct labor costs for 2015 and (b) the work in process inventory on December 31, 2015.
|
|
Compare the cultural beliefs toward death and dying
: Based on your own independent research in which you compare the cultural beliefs toward death and dying in Western societies to those in Eastern societies such as China, Vietnam, Japan, and so forth, write an essay that addresses the following poi..
|
|
Personality development of women
: How has that fact influenced concepts in personality theory and their validity? For example, is the personality development of women described as accurately as that of men
|
|
Appropriate accounting for two unrelated events
: Melanie Mielke Construction Corporation is considering the appropriate accounting for two unrelated events during the year. The first event related to the effects of a labor strike that resulted in a work stoppage on a major construction project. Pre..
|