Sage Corporation purchased for $280,000 a 25% interest in Murphy, Inc.
Sage Corporation purchased for $280,000 a 25% interest in Murphy, Inc. This investment enables Sage to exert significant influence over Murphy. During the year, Murphy earned net income of $182,000 and paid dividends of $61,000.
Prepare Sage's journal entries related to this investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Sage Corporation purchased for $280,000 a 25% interest in Murphy, Inc.
Zoop Corporation purchased for 300,000 a 30% interest in Murphy, Inc.
Brief Exercise 17-07 Zoop Corporation purchased for 300,000 a 30% interest in Murphy, Inc. This investment enables Zoop to exert significant influence over Murphy. During the year, Murphy earned net income of $180,000 and paid dividends of $60,000. Prepare Zoop's journal entries related to this investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Sage Corporation purchased trading investment bonds for $59,000 at par
Sage Corporation purchased trading investment bonds for $59,000 at par. At December 31, Sage received annual interest of $2,360, and the fair value of the bonds was $56,500. Prepare Sage' journal entries for (a) the purchase of the investment, (b) the interest received, and (c) the fair value adjustment. (Assume Value Adjustment account.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter...
On January 1, 2020, Culver Corporation purchased 20% of the common shares of Larkspur Company for...
On January 1, 2020, Culver Corporation purchased 20% of the
common shares of Larkspur Company for $159,000. During the year,
Larkspur earned net income of $86,000 and paid dividends of
$21,500. Prepare the entries for Culver to record the purchase and
any additional entries related to this investment in Larkspur
Company in 2020. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and...
On January 1, 2020, Shamrock Company purchased at par 8% bonds having a maturity value of...
On January 1, 2020, Shamrock Company purchased at par 8% bonds having a maturity value of $250,000. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest revenue on December 31, 2020 (c) Prepare the journal entry to record the interest...
Pina Colada Corporation purchased 1,050 common shares of Nolan Inc. common stock for $14,600 (Pina Colada...
Pina Colada Corporation purchased 1,050 common shares of Nolan Inc. common stock for $14,600 (Pina Colada does not have significant influence). During the year, Nolan paid a cash dividend of $3.90 per share. At year end, Nolan stock was selling for $35.20 per share. Prepare Pina Colada’s journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for...
On May 1, 2020, Sage Inc. entered into a contract to deliver one of its specialty...
On May 1, 2020, Sage Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapo0 to pay the contract price of $913 in advance on May 15, 2020. Kickapoo pays Sage on May 15, 2020, and Sage delivers the mower (with cost of $563) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Sage. (Credit account titles are automatically indented when the amount is entered....
On January 1, 2020, Crane Corporation purchased 20% of the common shares of Cheyenne Company for...
On January 1, 2020, Crane Corporation purchased 20% of the common shares of Cheyenne Company for $159,000. During the year, Cheyenne earned net income of $86,000 and paid dividends of $21,500. Prepare the entries for Crane to record the purchase and any additional entries related to this investment in Cheyenne Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
Exercise 17-17 On January 1, 2017, Bonita Corporation purchased 20% of the common shares of Windsor...
Exercise 17-17 On January 1, 2017, Bonita Corporation purchased 20% of the common shares of Windsor Company for $200,000. During the year, Windsor earned net income of $94,000 and paid dividends of $23.500 Prepare the entries for Bonita to record the purchase and any additional entries related to this investment in Windsor Company in 2017. (Credit account s are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account...
On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $181,500. At December...
On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $181,500. At December 31, Helbert declared and paid a $46,600 cash dividend and reported net income of $192,000. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and...
Sage Company issued $432,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is...
Sage Company issued $432,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is payable semiannually on July 1 and January 1. Sage Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance...
On January 1, 2020, Culver Corporation purchased 20% of the
common shares of Larkspur Company for $159,000. During the year,
Larkspur earned net income of $86,000 and paid dividends of
$21,500. Prepare the entries for Culver to record the purchase and
any additional entries related to this investment in Larkspur
Company in 2020. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and...
On January 1, 2020, Shamrock Company purchased at par 8% bonds having a maturity value of $250,000. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest revenue on December 31, 2020 (c) Prepare the journal entry to record the interest...
On May 1, 2020, Sage Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapo0 to pay the contract price of $913 in advance on May 15, 2020. Kickapoo pays Sage on May 15, 2020, and Sage delivers the mower (with cost of $563) on May 31, 2020. (a) Prepare the journal entry on May 1, 2020, for Sage. (Credit account titles are automatically indented when the amount is entered....
On January 1, 2020, Crane Corporation purchased 20% of the common shares of Cheyenne Company for $159,000. During the year, Cheyenne earned net income of $86,000 and paid dividends of $21,500. Prepare the entries for Crane to record the purchase and any additional entries related to this investment in Cheyenne Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
Exercise 17-17 On January 1, 2017, Bonita Corporation purchased 20% of the common shares of Windsor Company for $200,000. During the year, Windsor earned net income of $94,000 and paid dividends of $23.500 Prepare the entries for Bonita to record the purchase and any additional entries related to this investment in Windsor Company in 2017. (Credit account s are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account...
On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $181,500. At December 31, Helbert declared and paid a $46,600 cash dividend and reported net income of $192,000. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and...
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