QS C-15 Equity method transactions LO P5
Rowan Co. purchases 100 common shares (40%) of JBI Corp. as a
long-term investment for $500,000 cash on July 1. JBI Corp. paid
$5,000 in total cash dividends on November 1 and reported net
income of $100,000 for the year.
(1) - (3) Prepare Rowan's entries to record the
purchase of JBI shares, the receipt of its share of JBI dividends
and the December 31 year-end adjustment for its share of JBI net
income.
Homework Answers
| Jul-01 | Investment in JBI Corp | $ 5,00,000 | |
| Cash | $ 5,00,000 | ||
| [To record investment in common shares of JBI Corporation] | |||
| Nov-01 | Cash [5000*40%] | $ 2,000 | |
| Investment in JBI Corp | $ 2,000 | ||
| [To record receipt of dividends] | |||
| Dec-31 | Investment in JBI Corp [100000*40%] | $ 40,000 | |
| Investment revenue | $ 40,000 | ||
| [To record share of net income for the year] | |||
Add Answer to:
QS C-15 Equity method transactions LO P5
Rowan Co. purchases 100 common shares (40%) of JBI...
7. Exercise 15-12 Accounting for equity method investments LO P5 Listed below are a few events...
7.
Exercise 15-12 Accounting for equity method investments LO P5 Listed below are a few events and transactions of Kodax Company Year 1 Jan. 2 Purchased 30,eee shares of Grecco Co. common stock for $411, ce cash. Grecco has 9,000 shares of common stock outstanding and its activities will be significantly influenced by Kodax Sept. 1 Grecco declared and paid cash dividend of $1.50 per share. Dec. 31 Grecco announced that net incore for the year is $486.000. Year 2...
Exercise 15-12 Securities transactions; equity method LO P4 Listed below are a few events and transactions...
Exercise 15-12 Securities transactions; equity method LO P4 Listed below are a few events and transactions of Kodax Company 2017 Jan. 2 Purchased 34,000 shares of Grecco Co. common stock for $421,000 cash plus a broker's fee of $4,300 cash. Grecco has 85,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodex. Sept. 1 Crecco declared and paid a cash dividend of $2.80 per share. Dec. 31 Grecco announced that net incone for the year...
Required information Exercise D-8 Compare the fair value method to the equity method (LO D-2, D-3)...
Required information Exercise D-8 Compare the fair value method to the equity method (LO D-2, D-3) [The following information applies to the questions displayed below.) As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000. Exercise D-8 Part...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE. THANK YOU! Exercise 12-20 (Algo) Equity...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE.
THANK YOU!
Exercise 12-20 (Algo) Equity method; purchase; Investee Income; dividends (LO12-6) As a long-term Investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 8 million shares for $62 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net Income of $48 million and distributed cash dividends of $2.50...
On April 18, Riley Co. made a short-term investment in 390 common shares of XLT Co....
On April 18, Riley Co. made a short-term investment in 390 common shares of XLT Co. The purchase price is $51 per share and the res for profit. On May 30, Riley Co. receives $1.90 per share from XLT in dividends. Prepare the April 18 and May 30 journal entries to record these transactions. View transaction list Journal entry worksheet On April 18, Riley Co, made a short-term investment in 390 common shares of XLT Co. The purchase price is...
QS 9-5 Allowance method for bad debts LO P2 Gomez Corp. uses the allowance method to...
QS 9-5 Allowance method for bad debts LO P2 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,800 account of a customer, C. Green. On March 9, it receives a $1,300 payment from Green. 1. Prepare the journal entry or entries for January 31 2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green. View transaction list Journal entry worksheet > < 1...
Exercise 15-10 Transactions and fair value adjustments for stock investments with insignificant influence LO P4 Carlsville...
Exercise 15-10 Transactions and fair value adjustments for stock investments with insignificant influence LO P4 Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. 2:36:07 ook July 22 Purchased 1,400 shares of Hunt Corp. at $26 per...
Exercise 15-12 Securities transactions; equity method LO P4 Listed below are a few events and transactions...
Exercise 15-12 Securities transactions; equity method LO P4 Listed below are a few events and transactions of Kodax Company. 2017 Jan. 2 Purchased 24,960 shares of Grecco Co. common stock for $409,000 cash plus a broker's fee of $3,100 cash. Grecco has 96,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax. Sept. 1 Grecco declared and paid a cash dividend of $1.60 per share. Dec. 31 Grecco announced that net income for the year...
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....
Exercise 12-22 (Algo) Equity method; adjustment for depreciation [LO12-6, 12-7] Fizer Pharmaceutical paid $85 million on...
Exercise 12-22 (Algo) Equity method; adjustment for depreciation
[LO12-6, 12-7]
Fizer Pharmaceutical paid $85 million on January 2, 2021, for 5
million shares of Carne Cosmetics common stock. The investment
represents a 20% interest in the net assets of Carne and gave Fizer
the ability to exercise significant influence over Carne’s
operations. Fizer received dividends of $3 per share on December
21, 2021, and Carne reported net income of $35 million for the year
ended December 31, 2021. The fair...
7.
Exercise 15-12 Accounting for equity method investments LO P5 Listed below are a few events and transactions of Kodax Company Year 1 Jan. 2 Purchased 30,eee shares of Grecco Co. common stock for $411, ce cash. Grecco has 9,000 shares of common stock outstanding and its activities will be significantly influenced by Kodax Sept. 1 Grecco declared and paid cash dividend of $1.50 per share. Dec. 31 Grecco announced that net incore for the year is $486.000. Year 2...
Exercise 15-12 Securities transactions; equity method LO P4 Listed below are a few events and transactions of Kodax Company 2017 Jan. 2 Purchased 34,000 shares of Grecco Co. common stock for $421,000 cash plus a broker's fee of $4,300 cash. Grecco has 85,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodex. Sept. 1 Crecco declared and paid a cash dividend of $2.80 per share. Dec. 31 Grecco announced that net incone for the year...
Required information Exercise D-8 Compare the fair value method to the equity method (LO D-2, D-3) [The following information applies to the questions displayed below.) As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000. Exercise D-8 Part...
PLEASE PUT SOLUTION IN THE SAME FORMAT AS THE IMAGE.
THANK YOU!
Exercise 12-20 (Algo) Equity method; purchase; Investee Income; dividends (LO12-6) As a long-term Investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.'s 8 million shares for $62 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net Income of $48 million and distributed cash dividends of $2.50...
On April 18, Riley Co. made a short-term investment in 390 common shares of XLT Co. The purchase price is $51 per share and the res for profit. On May 30, Riley Co. receives $1.90 per share from XLT in dividends. Prepare the April 18 and May 30 journal entries to record these transactions. View transaction list Journal entry worksheet On April 18, Riley Co, made a short-term investment in 390 common shares of XLT Co. The purchase price is...
QS 9-5 Allowance method for bad debts LO P2 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,800 account of a customer, C. Green. On March 9, it receives a $1,300 payment from Green. 1. Prepare the journal entry or entries for January 31 2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green. View transaction list Journal entry worksheet > < 1...
Exercise 15-10 Transactions and fair value adjustments for stock investments with insignificant influence LO P4 Carlsville Company began operations in the current year and had no prior stock investments. The following transactions are from its short-term stock investments with insignificant influence. Prepare journal entries to record these transactions. On December 31, prepare the adjusting entry to record the fair value adjustment for the portfolio of stock investments. 2:36:07 ook July 22 Purchased 1,400 shares of Hunt Corp. at $26 per...
Exercise 15-12 Securities transactions; equity method LO P4 Listed below are a few events and transactions of Kodax Company. 2017 Jan. 2 Purchased 24,960 shares of Grecco Co. common stock for $409,000 cash plus a broker's fee of $3,100 cash. Grecco has 96,000 shares of common stock outstanding, and its policies will be significantly influenced by Kodax. Sept. 1 Grecco declared and paid a cash dividend of $1.60 per share. Dec. 31 Grecco announced that net income for the year...
Exercise 12-22 (Algo) Equity method; adjustment for depreciation
[LO12-6, 12-7]
Fizer Pharmaceutical paid $85 million on January 2, 2021, for 5
million shares of Carne Cosmetics common stock. The investment
represents a 20% interest in the net assets of Carne and gave Fizer
the ability to exercise significant influence over Carne’s
operations. Fizer received dividends of $3 per share on December
21, 2021, and Carne reported net income of $35 million for the year
ended December 31, 2021. The fair...
Most questions answered within 3 hours.
-
Hows does water affect the digestion of fats ?
asked 42 minutes ago -
A buffer that contains 0.41 M of a base, B and 0.21 M of its
conjugate...
asked 44 minutes ago -
Pleaaaaaaaasssssse help me please please it's more important
:((((((((((((((((((((
CASE STUDY
Nissan Company
Nissan Motor Company,...
asked 48 minutes ago -
Calculate the concentration of hydronium and hyroxide ions in 1)
2.0 mol/L HNO3 2) 0.5 mol/L...
asked 1 hour ago -
In a loop-the-loop ride a car goes around a vertical, circular
loop at a constant speed....
asked 1 hour ago -
50 grams each of water (18.015 g/mol) and ethylene glycol
(C2H6O2) (62.07 g/mol) are mixed. At...
asked 1 hour ago -
The life expectancy of sport utility vehicles follows a normal
distribution with a mean of 145.8...
asked 1 hour ago -
If an object with mass of 5 kg is pushed with a force of 552 N,...
asked 1 hour ago -
Suppose your program already has a list called nums, which
contains several numbers. Write a for...
asked 1 hour ago -
A spherical shell with a finite thickness just barely floats in
water. If the shell is...
asked 1 hour ago -
Explain in detail whether the following is true or false:
Total factor productivity will rise only...
asked 1 hour ago -
A firm pays a $2.50 dividend at the end of year one
(D1), has a stock...
asked 1 hour ago