Prepare rowans entries to record the purchase of jbi shares

Assignment Help Financial Management
Reference no: EM132379579

Question

Rowan Co. purchases 900 common shares (40%) of JBI Corp. as a long-term investment for $580,000 cash on July 1. JBI Corp. paid $11,000 in total cash dividends on November 1 and reported net income of $220,000 for the year.

Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.

Reference no: EM132379579

Questions Cloud

Why are investments shown as current assets : What method does the company use to depreciate its property and equipment? Explain the current liability "Accrued and other current liabilities."
Performance evaluation and video presentation assignment : Performance Evaluation and Video Presentation Assignment help and solution, evaluate the performance of each of the three projects.
Defendant and the trial court held in favor of plaintiff : The Plaintiff sued the Defendant and the trial court held in favor of Plaintiff, finding negligence on the part of the worker in knocking the cover into the vat
What amounts relative to the 2017 television warranties : What amounts relative to the 2017 television warranties would appear on the December 31, 2018, balance sheet and how would they be classified?
Prepare rowans entries to record the purchase of jbi shares : Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment.
How much were net purchases and cost of goods available : Using the standard inventory formula, and considering the information contained in Best Buy Co. financial statements, how much were net purchases.
How much of her salary will she be allowed to exclude : This year, she spent the entire year in London and earned a salary of $117,200. How much of her salary will she be allowed to exclude?
What does Chimerism mean for a person : What does Chimerism mean for a person if that person is the product of two fertilized eggs? If the soul theory is the basis of identity
Discuss the role of contracts in brief : This week we will discuss the role of contracts. From a purely IT perspective, what do you think the value of a software contract is? (Focus on only one of the)

Reviews

Write a Review

Financial Management Questions & Answers

  Considering new inventory system

DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, ..

  What is the net present value of the project

If the cost to invest in this project is $8,200, what is the Net Present Value of the project? Should you accept the project?

  The firm has an after- tax cost of capital

The Firm has an after- tax cost of capital of 12%, and its tax rate is 50%. Last year the firm had $800,000 of earnings before interest and taxes on its $12,000,000 of sales, while depreciation expense was $400,000. The firm had capital employed of $..

  Graphing bond prices versus time to maturity

Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 8.5 percent, has a YTM of 7 percent, and has 13 years to maturity. The Modigliani Company has a discount bond making semiannual payments. Illustrate your answ..

  Bill plans to open self-serve grooming center in storefront

Bill plans to open a self-serve grooming center in a storefront. What is the project's PI? Should it be accepted?

  The firms shares on the ex-dividend date

Texas Utilities pays a quarterly dividend of $0.77. Assume that the stock is trading at $35 per share, and that tomorrow is the ex-dividend date. Based on the past behavior of the firm’s shares on the ex-dividend date, you believe that the drop in th..

  Small business funding can come from many sources

Small business funding can come from many sources not available to other forms of enterprise.

  Calculate the NPV of investment

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. Calculate the NPV of this investment and determine if the project should be rejected..

  Depreciated straight-line to zero over three-year tax life

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.76 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. The project requires an initi..

  How to do an informational interview to prepare yourself

How the interview changed or did not change your perspective on the business side of fitness and wellness.

  Advantages and disadvantages of convertible bonds

What are the advantages and disadvantages of convertible bonds to both the company issuing the bonds and the investor buying the bonds?

  Preparation of your sales budget

Explain why budgeting is important and why it should be implemented despite the size of the organisation - preparation of your sales budget?

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