Question

978-1-337-11661

Students X ACC 308 Sylabus - ACC-JOS RM X 32 CengageNOW Online teacher. x + keAssignment/take Assignment Main.doFinvokerStake AssignmentSession Locator assignment takeinprogress false eBook Show Me How Calculator Print Item Equity Method Instructions Chart of Accounts General Journal Analysis Instructions Miler Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $180,000 on January 2018, and obtained se purchase price of the shares was equal to their book value. During 2018, the following information is available for Crowell Mar 31 June 30 Sept. 30 Dec 31 Declared and paid a cash dividend of $40,000 Reported semiannual earnings of $120,000 for the first half of 2018 Declared and paid a cash dividend of $40,000 Reported semiannual earnings of $140,000 for the second half of 2018 Required: 1. Prepare journal entries for Miler to reflect the preceding information 2. What is the balance in Miller's investment account on December 31, 2018? Check My Work o L a Do Bolo e xi

Answer 1

Solution for 1:

	In the Book Miller Corporation as on 31st Dec 2018
Date	Description	Debit	Credit
1-Jan-18	Investment in common stock	180,000
	Cash		180,000
31-Jan-18	Cash	12000
	Investment in common stock		12000
	40,000*30%
30-Jun-18	Investment	36000
	Investment Income		36000
	120,000*30%
30-Sep-18	Cash	12000
	Investment in common stock		12000
	40,000*30%
31-Dec-18	Investment in stock	42000
	Investment Income		42000
	140,000*30%

PARTB: Millers investment account
Initial purchase price	180000
Add: Share of profit	78000
Less: Dividend received	-24000
Investment as on 31/12/2018	234000