Under the equity method, the dividend revenue from a long-term investment—which has an ownership of 20%...
Under the equity method, the dividend revenue from a long-term investment—which has an ownership of 20% to 50%—the dividend is treated as a ________.
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return of capital |
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credit to current assets |
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debit to revenue from investments |
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dividend revenue |
Homework Answers
Under the equity method, the dividend revenue from a long-term investment—which has an ownership of 20% to 50%—the dividend is treated as a return on capital.
Explanation:
Under the equity method, when dividend is received, cash is debited and the investment account is credited. This journal entry reduces the balance of investment account.
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Under the equity method, the dividend revenue from a long-term
investment—which has an ownership of 20%...
Question 6 If the cost method is used to account for a long-term investment in common...
Question 6 If the cost method is used to account for a long-term investment in common stock, dividends received should be credited to the Dividend Revenue account. debited to the Stock Investments account. recorded only when 20% or more of the stock is owned. credited to the Stock Investments account. Question 7 If 10% of the common stock of an investee company is purchased as a long-term investment, the appropriate method of accounting for the investment is determined by agreement...
Under the equity method, the investor a) debits the Revenue from Investments when the investee reports...
Under the equity method, the investor a) debits the Revenue from Investments when the investee reports income U b) must debit the Equity Investments account when a dividend is received c) must record its share of the investee's net income o d) must use the LIFO method for tax purposes
mmon Consolidated Worksheet at End of the First Year of Ownership (Equity Method) On January 1,...
mmon Consolidated Worksheet at End of the First Year of Ownership (Equity Method) On January 1, 2009, Zigma Company acquired 100 percent of Standard Company's com shares at underlying book value. Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are as follows: Zigma Co Standard Co. Debit Credit Debit Credit Current Assets $238,000 $95,000 Depreciable Assets 300,000 170,000 Investment in Standard Co. 100,000 Other Expenses...
The beginning balance sheet of TextText Source Co. included aa $ 500 comma 000$500,000 investment in...
The beginning balance sheet of
TextText
Source Co. included
aa
$ 500 comma 000$500,000
investment in
AndyAndy
stock
(4040%
ownership,
TextText
has significant influence over
AndyAndy).
During the year,
TextText
Source completed the following investment transactions:
- X More Info Mar. 3 15 May Dec. 15 Purchased 2,000 shares at $10 per share of Ron Software common stock as a long-term equity investment, representing 4% ownership, no significant influence. Received a cash dividend of $0.94 per share on the Ron...
a) use the cost method for investment in singer B)use the partial equity method to record...
a) use the cost method for investment in singer
B)use the partial equity method to record its investment.
c)use the complete equity method to record its investment.
please do all 3 parts and show work.
c)uses the complete equity method to record its investment.
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the...
Pina Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock ($100 par...
Pina Company has the following stockholders’ equity accounts at
December 31, 2020.
Common Stock ($100 par value, authorized 7,600 shares)
$505,600
Retained Earnings
291,700
Prepare entries in journal form to record the following
transactions, which took place during 2021. (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.)
(1)
290 shares of outstanding stock were purchased at...
Problem 15-06 Oriole Company has the following stockholders’ equity accounts at December 31, 2020. Common Stock...
Problem 15-06
Oriole Company has the following stockholders’ equity accounts at
December 31, 2020.
Common Stock ($100 par value, authorized 7,600 shares)
$459,100
Retained Earnings
266,700
Prepare entries in journal form to record the following
transactions, which took place during 2021. (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.)
(1)
290 shares of outstanding stock were...
Equity Method for Stock Investment At a total cost of $1,800,000, Herrera Corporation acquired 120,000 shares...
Equity Method for Stock Investment At a total cost of $1,800,000, Herrera Corporation acquired 120,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 300,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. a. Journalize the entries by Herrera Corporation to record the following information: 1. Tran Corp. reports net income of $3,240,000 for the current period. Investment in Tran Corp....
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, plant and Equipment Stockholders' Equity...
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Additional Paid-in Capital Paid-in Capital Capital Stock Total Capital Stock Total Paid-in Capital Total Stockholders' Equity Total Additional Paid-in Capital Total Paid-in Capital and Retained Earnings Ayayai Corp. has issued 90,000 shares of $4 par...
Bramble Company has the following stockholders’ equity accounts at December 31, 2017. Common Stock ($100 par...
Bramble Company has the following stockholders’ equity accounts
at December 31, 2017. Common Stock ($100 par value, authorized
8,600 shares) $455,900 Retained Earnings 311,600 Prepare entries in
journal form to record the following transactions, which took place
during 2018. (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.) (1) 300 shares of outstanding stock were purchased at...
Under the equity method, the investor a) debits the Revenue from Investments when the investee reports income U b) must debit the Equity Investments account when a dividend is received c) must record its share of the investee's net income o d) must use the LIFO method for tax purposes
mmon Consolidated Worksheet at End of the First Year of Ownership (Equity Method) On January 1, 2009, Zigma Company acquired 100 percent of Standard Company's com shares at underlying book value. Zigma uses the equity method in accounting for its ownership of Standard. On December 31, 20X9, the trial balances of the two companies are as follows: Zigma Co Standard Co. Debit Credit Debit Credit Current Assets $238,000 $95,000 Depreciable Assets 300,000 170,000 Investment in Standard Co. 100,000 Other Expenses...
The beginning balance sheet of
TextText
Source Co. included
aa
$ 500 comma 000$500,000
investment in
AndyAndy
stock
(4040%
ownership,
TextText
has significant influence over
AndyAndy).
During the year,
TextText
Source completed the following investment transactions:
- X More Info Mar. 3 15 May Dec. 15 Purchased 2,000 shares at $10 per share of Ron Software common stock as a long-term equity investment, representing 4% ownership, no significant influence. Received a cash dividend of $0.94 per share on the Ron...
a) use the cost method for investment in singer
B)use the partial equity method to record its investment.
c)use the complete equity method to record its investment.
please do all 3 parts and show work.
c)uses the complete equity method to record its investment.
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the...
Pina Company has the following stockholders’ equity accounts at
December 31, 2020.
Common Stock ($100 par value, authorized 7,600 shares)
$505,600
Retained Earnings
291,700
Prepare entries in journal form to record the following
transactions, which took place during 2021. (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.)
(1)
290 shares of outstanding stock were purchased at...
Problem 15-06
Oriole Company has the following stockholders’ equity accounts at
December 31, 2020.
Common Stock ($100 par value, authorized 7,600 shares)
$459,100
Retained Earnings
266,700
Prepare entries in journal form to record the following
transactions, which took place during 2021. (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.)
(1)
290 shares of outstanding stock were...
Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Additional Paid-in Capital Paid-in Capital Capital Stock Total Capital Stock Total Paid-in Capital Total Stockholders' Equity Total Additional Paid-in Capital Total Paid-in Capital and Retained Earnings Ayayai Corp. has issued 90,000 shares of $4 par...
Bramble Company has the following stockholders’ equity accounts
at December 31, 2017. Common Stock ($100 par value, authorized
8,600 shares) $455,900 Retained Earnings 311,600 Prepare entries in
journal form to record the following transactions, which took place
during 2018. (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.) (1) 300 shares of outstanding stock were purchased at...
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