Homework Answers
| Journal | Debit | Credit |
| Investment in Burks Inc A/c Dr | $210,000 | |
| To Cash A/c | $210,000 | |
| Investment in Burks Inc A/c Dr | $36,000 | |
| To Investment income in Burks Inc A/c Dr | $36,000 | |
| (see the working note 1 ) | ||
| Cash A/c Dr | $10,000 | |
| To Investment income in Burks Inc A/c Dr | $10,000 | |
| (see the working note 2 ) | ||
| Working Note(1) | ||
| unadjusted Net income | $80,000 | |
| Profit from sale of inventory to burks | ||
| (40000-30000) | $10,000 | |
| Adjusted Net Income | $90,000 | |
| Share of Alamar | 40% | |
| Share of Alamar in Burks Inc income | $36,000 | |
| (90,000*40%) | ||
| Working Note(2) | ||
| Cash dividends | $25,000 | |
| Share of Alamar | 40% | |
| Share of Alamar in Burks Inc dividends | $10,000 | |
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The Equity Method of Accounting for Investments 31 17. On January...
Need help with the ones I got incorrect please The options for the journal entry are:...
Need help with the ones I got incorrect please
The options for the journal entry are:
Cash
Dividend income
Dividend receivable
Dividends payable
Equity in investee income
Goodwill
Inventory
Investment in Burma inc
Notes payable
Retained earnings
Sales
Saved Help Save&Exit Submit ck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Problem 1-17 (LO 1-3, 1-6) disclosed net assets with n acquired...
On January 1 2021. Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $224.000....
On January 1 2021. Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $224.000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $354,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $26,000. Alamar sold inventory costing $24,000 to Burks during 2021 for $37000 Burks used all of this merchandise in its operations during 2021 Prepare all of Alamar's 2021 journal entries to...
8 to 11? could you also write a solution The Equity Method of Accounting for Investments...
8 to 11? could you also write a solution
The Equity Method of Accounting for Investments 29 8. Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although did not use it, this acquisition gave Franklin the ability to apply sinificant influence to Johnson operating and financing policies. Johnson reports assets on that date of $1.400,000 with lat of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books $140,000. Also, Johnson's book value...
method 2. On January 1, 2011, Ruark Corporation acquired a 37 percent interest in Batson, Inc.,...
method 2. On January 1, 2011, Ruark Corporation acquired a 37 percent interest in Batson, Inc., for $210,000. On that date, Batson's balance sheet disclosed net assets of $400,000. During 2011, Batson reported net income of 110,000 and paid cash dividends of $70,000. Ruark sold inventory costing $40,000 to Batson during 2011 for $50,000. Batson used $35,000 worth of this merchandise in its operations during 3011. Prepare all of Ruark's 2011 journal entries to apply the equity method to this...
Ch 17 in-Class Practice Problem First Name: Last Name: Equity Investments --Fair value and equity methods...
Ch 17 in-Class Practice Problem First Name: Last Name: Equity Investments --Fair value and equity methods Fil in the dollar changes caused in the investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company (a) Fair Value Method Investment Dividend Account Revenue (b) Equity Method Investment Investment Account Revenue Transaction 1. At the...
Accounting for Equity Method Investments Easton Company acquires 40 percent of the outstanding voting shares of...
Accounting for Equity Method Investments Easton Company acquires 40 percent of the outstanding voting shares of Harris Company on January 1, 2019. To obtain these shares, Easton pays $156,000 in cash. Harris's book value of stockholders' equity is $280,000. Easton believes that (1) Harris buildings are undervalued by $40,000, and (2) Harris has an unrecorded patent that Easton values at $30,000. Easton considers the remaining balance sheet items to be fairly valued (no book-to-fair value difference). The remaining $40,000 of...
Journal Entries Include 1. Investment In Seida Cash 2. Investment in Seida Equity Income in Investment...
Journal Entries Include
1. Investment In Seida
Cash
2. Investment in Seida
Equity Income in Investment in Seida
3. Equity Income in Investment in Seida
Investment in Seida
4. Dividend receivable
Investment in Seida
5. Cash
Dividend Receivable
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $655,000 which resulted in significant...
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $200,000 and appropriately...
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $200,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $644,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $1,920,000 in total. Seida's January 1, 2018 book value equaled $1,770,000, although land was undervalued by $138,000. Any additional excess fair value over Seida's...
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...
On January 1, 2018, Regal Entertainment acquired a 40% interest in Cineworld Inc. for $250,000. O...
On January 1, 2018, Regal Entertainment acquired a 40% interest in Cineworld Inc. for $250,000. On that date, Cineworld's balance sheet disclosed net assets of $430,000. During 2018, Cineworld reported net ncome of $100,000 and paid cash dividends of $30,000. Any excess cost over fair value is attributable to an unamortized trademark with a 20-year remaining life. Required 1. Assume that Regal accounts for its investment in Cineworld using the equity method. Prepare 2. Assume that Regal accounts for its...
Need help with the ones I got incorrect please
The options for the journal entry are:
Cash
Dividend income
Dividend receivable
Dividends payable
Equity in investee income
Goodwill
Inventory
Investment in Burma inc
Notes payable
Retained earnings
Sales
Saved Help Save&Exit Submit ck my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Problem 1-17 (LO 1-3, 1-6) disclosed net assets with n acquired...
On January 1 2021. Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $224.000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $354,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $26,000. Alamar sold inventory costing $24,000 to Burks during 2021 for $37000 Burks used all of this merchandise in its operations during 2021 Prepare all of Alamar's 2021 journal entries to...
8 to 11? could you also write a solution
The Equity Method of Accounting for Investments 29 8. Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although did not use it, this acquisition gave Franklin the ability to apply sinificant influence to Johnson operating and financing policies. Johnson reports assets on that date of $1.400,000 with lat of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books $140,000. Also, Johnson's book value...
method 2. On January 1, 2011, Ruark Corporation acquired a 37 percent interest in Batson, Inc., for $210,000. On that date, Batson's balance sheet disclosed net assets of $400,000. During 2011, Batson reported net income of 110,000 and paid cash dividends of $70,000. Ruark sold inventory costing $40,000 to Batson during 2011 for $50,000. Batson used $35,000 worth of this merchandise in its operations during 3011. Prepare all of Ruark's 2011 journal entries to apply the equity method to this...
Ch 17 in-Class Practice Problem First Name: Last Name: Equity Investments --Fair value and equity methods Fil in the dollar changes caused in the investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company (a) Fair Value Method Investment Dividend Account Revenue (b) Equity Method Investment Investment Account Revenue Transaction 1. At the...
Accounting for Equity Method Investments Easton Company acquires 40 percent of the outstanding voting shares of Harris Company on January 1, 2019. To obtain these shares, Easton pays $156,000 in cash. Harris's book value of stockholders' equity is $280,000. Easton believes that (1) Harris buildings are undervalued by $40,000, and (2) Harris has an unrecorded patent that Easton values at $30,000. Easton considers the remaining balance sheet items to be fairly valued (no book-to-fair value difference). The remaining $40,000 of...
Journal Entries Include
1. Investment In Seida
Cash
2. Investment in Seida
Equity Income in Investment in Seida
3. Equity Income in Investment in Seida
Investment in Seida
4. Dividend receivable
Investment in Seida
5. Cash
Dividend Receivable
Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $199,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $655,000 which resulted in significant...
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...
On January 1, 2018, Regal Entertainment acquired a 40% interest in Cineworld Inc. for $250,000. On that date, Cineworld's balance sheet disclosed net assets of $430,000. During 2018, Cineworld reported net ncome of $100,000 and paid cash dividends of $30,000. Any excess cost over fair value is attributable to an unamortized trademark with a 20-year remaining life. Required 1. Assume that Regal accounts for its investment in Cineworld using the equity method. Prepare 2. Assume that Regal accounts for its...
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