Situation 2: Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for...

Question

Question

Situation 2: Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for $350,000. During 2019 Dobbs Com 18. The beginning balance in the investment account in Dobbs Company was $350,000, the balance at December 31, 2019 should be

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Solution: 018 beg. Bal Add : share in net income=150000*0.3 Less: share in dividend=-60000*0.3 Balance as on Dec 31,2019 3500

Add a comment

Answer 2

Similar Homework Help Questions

Situation 2: Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for...

Situation 2: Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for $350,000. During 2019 Dobbs Company had net income of $150,000 and paid a cash dividend of $60,000. (Dobbs Company paid $60,000 cash dividend to all of its shareholders.) 14. Asom Assuming no other factors need to be considered, 30% interest acquired by Goebel enables them to exercise "significant influence over the Dobbs Company. Goebel should account for the investment a. by using the equity...
Situation 1: Goebel Company acquired a 20% interest in Dobbs Company on December 31, 2018 for...

Situation 1: Goebel Company acquired a 20% interest in Dobbs Company on December 31, 2018 for $350,000. During 2019 Dobbs Company had net income of $150,000 and paid a cash dividend of $60,000. (Dobbs Company paid $60,000 cash dividend to all of its shareholders.) 12. Based on the information regarding Goebel's investment in Dobbs Company: Fair Value 12/31/18 12/31/19 $350,000 $365,000 Cost $350,000 Equity investment If the Fair Value Adjustment has a debit balance of $8,000, what amount of unrealized...
II. Problem Set 1 with Options (Total 39 pts.; 3 pts each) Goebel Company purchased outstanding...

II. Problem Set 1 with Options (Total 39 pts.; 3 pts each) Goebel Company purchased outstanding shares of Dobbs Company's common stock. Under the following two independent scenarios (Situation 1 and 2), use the following information for questions 8-20. Situation 1: Goebel Company acquired a 20% interest in Dobbs Company on December 31, 2018 for $350,000. During 2019 Dobbs Company had net income of $150,000 and paid a cash dividend of $60,000. (Dobbs Company paid $60,000 cash dividend to all...

*USE T ACCOUNTS If Goebel Company acquired a 20% interest in Dobbs Company on December 31,...

*USE T ACCOUNTS If Goebel Company acquired a 20% interest in Dobbs Company on December 31, 2018 for $290,000 and during 2019 Dobbs Company had net income of $150,000 and paid a cash dividend of $60,000, applying the fair value method would give a debit balance in the Equity Investments (Dobbs) account at the end of 2019 of? If Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for $440,000 and during 2019 Dobbs Company had...
The financial statements of Hainz Company appear below: HAINZ COMPANY Comparative Balance Sheet December 31 Assets...

The financial statements of Hainz Company appear below: HAINZ COMPANY Comparative Balance Sheet December 31 Assets 2019 Cash $20,000 Short-term investments 20,000 Accounts receivable (net) 40,000 Inventory 60,000 Property, plant and equipment (net) 260,000 Total assets $400,000 Liabilities and stockholders' equity Accounts payable $20,000 Short-term notes payable 40,000 Bonds payable 80,000 Common stock 150,000 Retained earnings 110,000 Total liabilities and stockholders' equity $400,000 2018 $40,000 60,000 30,000 70,000 300,000 $500,000 $30,000 90,000 160,000 150,000 70,000 $500,000 HAINZ COMPANY Income Statement...
1. Sol Corporation acquired 10% of the 100,000 ordinary shares of C Electronics at a total cost of $15 per share on Dec 1, 2018. On December 30, C Electronics declared and paid a $50,000 dividend....

1. Sol Corporation acquired 10% of the 100,000 ordinary shares of C Electronics at a total cost of $15 per share on Dec 1, 2018. On December 30, C Electronics declared and paid a $50,000 dividend. On December 31, C Electronics reported net income of $200,000 for the year. At December 31, the market price of C Electronics was $18 per share. (a) If the share investment is classified as "trading" Please prepare all the necessary journal entries for 2018...

On December 31, 20X8, Pancake Company acquired controlling ownership of Syrup Company. A consolidated balance sheet...

On December 31, 20X8, Pancake Company acquired controlling ownership of Syrup Company. A consolidated balance sheet was prepared immediately. Partial balance sheet data for the two companies and the consolidated entity at that date follow: Pancake Syrup Consolidated Company Company Entity Cash $ 80,000 $ 30,000 $ 110,000 Accounts Receivable 50,000 ? 78,000 Inventory 60,000 50,000 115,000 Buildings and Equipment 200,000 140,000 365,000 Less: Accumulated Depreciation (50,000 ) (28,000 ) (78,000 ) Investment in Syrup Stock ? Goodwill 15,000 Total...
On December 31, Year 1, Company A purchased 75% of Company B’s outstanding common shares for...

On December 31, Year 1, Company A purchased 75% of Company B’s outstanding common shares for $150,000 in cash. On that date, the carrying amount of Company B’s assets and liabilities approximated their fair value, and the fair value of the noncontrolling interest (NCI) was $12,000. The following is the summarized balance sheet information for the two companies on December 31, Year 1, before the acquisition. Company A Company B Current assets $200,000 $ 80,000 Noncurrent assets 320,000 140,000 Current...
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid...

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $872,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $218,000 both before and after Miller's acquisition. On January 1, 2019, Taylor reported a book value of $490,000 (Common Stock = $245,000; Additional Paid-In Capital = $73,500; Retained Earnings = $171,500). Several of Taylor's buildings...

Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018...

Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018 Penske $ (796, 000) Stanza $632,000) Revenues Cost of goods sold Depreciation expense Investment income Dividends declared Retained earnings, 1/1/18 Current assets Copyrights Royalty agreements Investment in Stanza Liabilities Common stock Additional paid-in capital 284,100 153,000 158,000 258,000 Not given 80,000 (606, 000) 408,000 974,000 646,000 60,000 (362,000) 612,000 519,00 1,004,000 Not given (570,000) (1,337,000) (600,000) ($20 par) (200,000) ($10 par) (150,000) (80,000) Note:...

Situation 2: Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for...

Homework Answers