User Account

All Pages

What should be reported as investment in Happy Inc

Assignment Help Accounting Basics
Reference no: EM132893452

Question - Significant Influence Investment - Prepare all calculations. EQUITY method of accounting significant influence

On January 1, 2020, Joy Inc. paid $900,000 to purchase 30% of Happy Inc's outstanding voting shares. Joy Inc. has significant influence over Happy Inc. Assume that Joy Inc. is using the for this investment of. The following took place in 2020:

Happy's earnings for 2020 were $150,000, which included $20,000 (in profits) that resulted from sales of inventory from Joy.

Happy has not yet used the inventory purchased from Joy. They will process it next year and the resulting product will be sold to one of Happy's key customers.

Happy declared and paid dividends in the amount of $40,000 during 2020.

Required -

a) What should be reported as "investment in Happy Inc." on Joy's balance sheet as of December 31, 2020?

b) Prepare all the necessary journal entries for Joy for 2020.

Reference no: EM132893452

Questions Cloud

Description of the area of study : Description of the Area of Study: The global COVID-19 pandemic has shocked the world and required nations to make immediate and drastic decisions in the best in
What manufacturing overhead cost estimates for special order : What Manufacturing overhead cost estimates for pecial order total? Cake Supplies applies manufacturing overhead costs to products at a budgeted indirect-cost.
High level business intelligence process : By using your own words, describe FIVE (5) Business and Decision Making Process or a High Level Business Intelligence Process.
Fcs240-foundations of customer service : Provide an example of a Service Breakdown that you have experienced:
What should be reported as investment in Happy Inc : What should be reported as "investment in Happy Inc." on Joy's balance sheet as of December 31, 2020
Managerial economics-opportunity costs : Describe a decision that you or your company made that involved opportunity costs that should have been considered.
Explain the concept of ambience : Part 1: Explain the concept of Ambience as it applies to the location design. What are some of the considerations that need to be made when planning out a locat
What is the predetermined overhead allocation rate applied : What is the predetermined overhead allocation rate applied by Doric? Doric Agricultural Products uses a predetermined overhead allocation rate.
Find the amount of manufacturing overhead costs allocated : Using actual costing, the amount of manufacturing overhead costs allocated to jobs during 2010 is? Davao Dog Supply Manufacturing uses machine-hours

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