User Account

All Pages

Make journal entry necessary to record info on american co

Assignment Help Accounting Basics
Reference no: EM132784324

On January 1, 2011, American Corporation purchased 25% of the outstanding voting shares of Short Supplies common stock for $210,000 cash. On that date, Short's book value and fair value were both $840,000. The equity method is deemed appropriate for this investment.
Short's net income reported on December 31, 2011, was $80,000. During 2011, Short also paid cash dividends in the amount of $24,000.

Problem 1: Prepare the journal entries necessary to record the above information on American Corporation's books during 2011.

Reference no: EM132784324

Questions Cloud

Which is a characteristic of preference shares : Which of the following is a characteristic of preference shares? A corporation might repurchase its own stock for all of the following reasons except to
Which is a characteristic of ordinary share : Which of the following is a characteristic of ordinary shares? Ordinary shareholders usually have all of the following rights except to
What the balance of the deferred gross profit account : What the balance of the deferred gross profit account on December 31, 2016 should be? The Brownout, Inc., began operating at the start
Discuss where documentation of audit risk assessment be done : Discuss with your students, Four (4) ways where documentation of the audit risk assessment can be done and Four (4) conditions or circumstances
Make journal entry necessary to record info on american co : Prepare the journal entries necessary to record the information on American Corporation's books during 2011. American Corporation purchased 25% of outstanding.
Discuss the importance of the balance of payments : Discuss the current account and its components and the capital and financial accounts and their components. Discuss the importance of the balance of payments
What would total equities be on march : What would total equities be on March 31st? They Acquired $8,200 of direct materials, 51% of which was acquired on open account
What is the ownership percentage of the vc : Assume the preferred stock is participating. At an exit value of $16,000,000, what is the payoff to the VC? What is the ownership percentage of the VC
What is the lease liability on December : Included in the annual rental is an amount of P3,000 to cover reimbursement for insurance paid by the lessor. What is the lease liability on December

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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