User Account

All Pages

Provide the Ferguson Company journal entries

Assignment Help Accounting Basics
Reference no: EM132692286

Problem - On January 4, Year 1, Ferguson Company purchased 480,000 shares of Silva Company directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $750,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $2,000,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva.

Required -

a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1.

b. Determine the December 31, Year 1, balance of the investment in Silva Company stock account.

Reference no: EM132692286

Questions Cloud

Journalize Bulldog purchase of the stock : Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock
ETHICS AND DECISION MAKING : Develop an understanding of complex ethical issues that leaders face in today's environment;
What type of ratio is the quick ratio : Financial statement ratio analysis may be undertaken to study liquidity, turnover, profitability, and other measures. What type of ratio is the quick ratio?
Primary decision makers for organizational change : In most cases, those in senior management are the primary decision makers for organizational change.
Provide the Ferguson Company journal entries : Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1
Discuss the depictions of gender and ideas : Read Christine de Pizan's The Book of the City of Ladies (Norton Anthology p1995-2022). Discuss the depictions of gender and ideas in the text. Explain.
How does depreciation relate to the matching principle : How does depreciation relate to the matching principle? Is depreciation an exact calculation? If not, what estimates are involved?
Relationship between inflation and interest rates : Assuming these estimates are right, and using the exact relationship between inflation and interest rates, what rate of interest can you expect to earn on your
Discussing cloud application security : Write 200 to 300 words defining and discussing cloud application security. Compare and contrast it with other types of application security.

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