Please complete JE 12. Thank you!
Solution:
Journal Entry
S.No | Date | Particulars | Debit ($) | Credit ($) |
12. | 12/31/2018 | Equity in Kinman income | $3,780 | |
Investment in Kinman Co. | $3,780 |
Inventory 2018
Inventory remaining at end of year 30% (84000*30%) | $25,200 |
Profit margin (84000-52500)/84000 | 0.375 |
unearned gross profit (84000*30%*0.375) | 9450 |
40% Acquisition (9450*40%) | 3780 |
Please complete JE 12. Thank you! 5 Harper, Inc. acquires 40 percent of the outstanding voting...
Harper, Inc. acquires 40 percent of the outstanding voting stock
of Kinman Company on January 1, 2017, for $228,600 in cash. The
book value of Kinman's net assets on that date was $445,000,
although one of the company's buildings, with a $71,000 carrying
amount, was actually worth $112,000. This building had a 10-year
remaining life. Kinman owned a royalty agreement with a 20-year
remaining life that was undervalued by $85,500. Kinman sold
inventory with an original cost of $98,700 to...
Harper, Inc, acquires 40 percent of the outstanding voting stock of Kinma Company on January 1, 2017, for $228,600 in cash. The book value of Kinman's net assets on that date was $445,000, although one of the company's buildings, with a $71,000 carrying amount, was actually worth $112,000. This building had a 10-year remaining life. Kinman owned a roya agreement with a 20-year remaining life that was undervalued by $85,500. Kinman sold inventory with an original cost of $98,700 to...
5 Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $345,900 in cash. The book value of Kinman's net assets on that date was $675,000, although one of the company's buildings, with a $63,600 carrying amount, was actually worth $125,850. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $127,500. 0.71 Kinman sold inventory with an original cost of...
Harper, Inc. acquires 40 percent of the outstanding voting stock
of Kinman Company on January 1, 2017, for $417,800 in cash. The
book value of Kinman's net assets on that date was $855,000,
although one of the company's buildings, with a $77,400 carrying
amount, was actually worth $138,900. This building had a 10-year
remaining life. Kinman owned a royalty agreement with a 20-year
remaining life that was undervalued by $128,000. Kinman sold
inventory with an original cost of $98,700 to...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $243,700 in cash. The book value of Kinman's net assets on that date was $460,000, although one of the company's buildings, with a $74,200 carrying amount, was actually worth $118,450. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $105,000. Kinman sold inventory with an original cost of $126,000 to...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $417,800 in cash. The book value of Kinman's net assets on that date was $855,000, although one of the company's buildings, with a $77,400 carrying amount, was actually worth $138,900. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $128,000. Kinman sold inventory with an original cost of $98,700 to...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $276,500 in cash. The book value of Kinman's net assets on that date was $530,000, although one of the company's buildings, with a $71,600 carrying amount, was actually worth $122,850. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $110,000. Kinman sold inventory with an original cost of $52,500 to...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $297,600 in cash. The book value of Kinman's net assets on that date was $580,000, although one of the company's buildings, with a $75,000 carrying amount, was actually worth $127,500. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $111,500. Kinman sold inventory with an original cost of $75,600 to...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $248,800 in cash. The book value of Kinman's net assets on that date was $430,000, although one of the company's buildings, with a $74,800 carrying amount, was actually worth $125,300. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $141,500. Kinman sold inventory with an original cost of $102,900 to Harper...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $365,700 in cash. The book value of Kinman's net assets on that date was $760,000, although one of the company's buildings, with a $71,200 carrying amount, was actually worth $111,450. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $114,000. Kinman sold inventory with an original cost of $65,100 to Harper...