Record the above transactions for the year ended december

Assignment Help Financial Accounting
Reference no: EM133144127

Question - Resolute Limited acquired 45% of Jain Corporation's 58,000 common shares for $17 per share on January 1, 2021. On June 15, Jaindeclared a dividend of $126,000 and Aurora received its share of the dividend on the same day. On December 31, Jain reported net income of $304,000 for the year. At December 31, Jain's shares were trading at $20 per share. Resolute accounts for this investment using the equity method.

Resolute also acquired 15% of the 378,000 common shares of Trevis Ltd for $29 per share on March 18, 2021. On June 30, Trevisdeclared a $330,000 dividend and Aurora received its share of these dividends on that day. On December 31, Trevis reported net income of $594,000 for the year. At December 31, Trevis's shares were trading at $27 per share. Resolute intends to hold on to the Trevis shares as a long-term investment for the dividend income. Resolute uses the fair value through profit or loss model for this investment.

Required - Record the above transactions for the year ended December 31, 2021.

Reference no: EM133144127

Questions Cloud

Make realistic assumptions about any missing data : Complete Warner and Augustine's Form 1040 and Schedules 1, A, and D and Form 8949. Make realistic assumptions about any missing data
Customer integration strategy in automobile industry : Can you please identify customer integration strategy in Automobile Industry?
Complete covid communications style assignment : Relationship selling and in particular communication styles have significantly changed due to Covid 19.
Discuss the change and the reasons behind change : Identify a company that have changed its logos over time. Discuss the change and the reasons behind this change. How have these changes helped the company commu
Record the above transactions for the year ended december : Resolute also acquired 15% of the 378,000 common shares of Trevis Ltd for $29 per share on March 18, 2021. Record the above transactions for the year ended
What have you learned from the speaker : 1. What have you learned from the speaker? 2. Do you agree/disagree with the speaker's point of view?
Think of a marketing mix for the business idea : Business idea: Creating a company that will offer door to door delivery service. We hope to focus on fast and convenient medium and short distance delivery, inc
Ethical to web scrape website : "Is it ethical to web scrape a website?", the audience is seeking specific knowledge on the topic.
Conducting information systems audit : The primary method to evaluate the effectiveness of an information system's controls is from conducting an information systems audit.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Difference between the amount deafening racket

Mark is also concerned that his accounts receivable have become a significant proportion of his assets. Prior to expanding his business operations Mark had been owed no more than a few hundred dollars. Explain to Mark why there is a difference betwee..

  Calculate the taxable value of the benefit for jim mcentee

Calculate the Taxable Value of the benefit for the 2017/18 fringe benefits tax (FBT) year for the vehicle using both the statutory formula method

  Question 1the first case focuses on madoff securities and

question 1the first case focuses on madoff securities and in particular the role that his accountant david friehling

  Calculate the net income and total asset turnover

Calculate the net income, sales, and total asset turnover that Mindspin Labs will have if the change to services is made and the firm is able to earn an average

  Who has priority to claim autumn as dependent

William and Charlotte Collins divorced in November of year 1. William moved out and Charlotte remained in their house with their 10-month-old daughter Autumn. Diana, Charlotte's mother, lived in the home and acted as Autumn's nanny for all of year 1...

  Differences between ifrs and gaap

In 2009, the FASB completed a five-year effort to distill the existing GAAP literature into a single database known as: Financial statements follow: Differences between IFRS and GAAP include all of the following EXCEPT:

  What is the weighted average number of shares outstanding

The company issued 720,000 ordinary shares on Sep 1, 2020. What is the weighted average number of shares outstanding in 2020

  Prepare the shareholders equity section of the statement

Prepare the shareholders' equity section of the statement of financial position at December 31. Prepare the statement of changes in equity for the year.

  What is the annual operation cash flow for the project

What is the annual operation cash flow for the project? Ernie' Electrical is evaluation a project which will increase annual sales by $50000

  What is appropriate discount rate for europaper issue priced

What is the appropriate discount rate for a 270-day Europaper issue priced at par (100) and expected to sell today at a discounted price of 97?

  How would accept order affect maui juda''s operating income

How would accept the order affect Maui Juda's operating income?  In addition to the special order's effect, what other (long-term, qualitative) factors should Maui Juda's managers consider in deciding whether to accept the order?

  What is the quantity of imports at the end of one year

What is the quantity of imports at the end of one year (US is the foreign country)? Per annum change in the US dollar price of exports-4.0%

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