Reference no: EM133022964
Question - On January 1, Year 4, Pas owned 80% of the outstanding common shares of Star. Pas accounts for its investment using the equity method. The balance in the investment account on Jan 1, Year 4, amounted for $165,500. There is no undepleted acquisition differential. The shareholders' equity of Star on Jan 1, Year 4, was as follows:
Common (ordinary) shares (9,000 shares outstanding) = $42,000
Retained earnings = $126,000
The following events occurred in Year 4:
-Star earned net income $52,000.
-On Mar 1, Year 4, Star issued 3,000 shares at a price of $45 per share. Pas did not acquire any of these shares.
-Star declared and paid out dividends $20,000 on July 31.
-On Dec 31, Year 4, Pas sold 4,500 shares of its investment in Star for 185,000.
Required -
1. Prepare journal entries for March 1, Y4 and Dec 21 Y4.
2. What is the ending balance of the investment in Star?
|
Outline six stages of typical capital expenditure process
: Question - Outline the six stages of the typical capital expenditure process and explain the likely role of the management accountant in this process
|
|
What is your portfolio beta
: You also buy 4,700 shares of TransDigm Group(TDG), which has price $552 and beta 1.1. What is your portfolio beta
|
|
What is the maximum capital budget amount
: The firm follows a residual dividend policy. What is the maximum capital budget amount the firm can finance without raising external equity
|
|
How large are the annual deposits
: The first tuition payment is payable on January 1st 2025. The second is payable on January 1st 2026 and so on. How large are the annual deposits
|
|
What is the ending balance of the investment in star
: On Mar 1, Year 4, Star issued 3,000 shares at a price of $45 per share. Pas did not acquire any of these shares. What is the ending balance of the investment
|
|
Compute the break-even volume in units
: Brunswick has determined that $50,000 of cost of goods sold and $166,000 of operating expenses are fixed. Compute the break-even volume in units
|
|
What the correct entry to record the cash sales
: At the end of the day, the cash register's record shows $1,284, but the count of cash in the cash register is $1,262. What the correct entry to record the cash
|
|
What amount will be recorded as cash dividends
: A corporation has issued 30,000 shares of $50 par common stock and holds 5,000 of these shares as treasury stock. What amount will be recorded as cash dividends
|
|
Develop a schedule of cash disbursements for purchases
: Spana Company has the following data: Total Monthly Purchasing Budget - January 220,000. Develop a schedule of cash disbursements for purchases
|