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  • On December 12, 2018, an equity Investment costing $83,000 was sold for $106,000. The investment was...

    On December 12, 2018, an equity Investment costing $83,000 was sold for $106,000. The investment was carried in the balance sheet at $78,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account Required: 1. & 2. Prepare the following journal entries ignore Income...

  • On December 12, 2018, an equity investment costing $84,000 was sold for $108,000. The investment was...

    On December 12, 2018, an equity investment costing $84,000 was sold for $108,000. The investment was carried in the balance sheet at $79,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income...

  • On December 12, 2018, an equity investment costing $96,000 was sold for $132,000. The investment was...

    On December 12, 2018, an equity investment costing $96,000 was sold for $132,000. The investment was carried in the balance sheet at $91,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income...

  • HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory...

    HUBBARD CORPORATION Balance Sheet At December 31, 2021 Assets Buildings Land Cash Accounts receivable (net) Inventory Machinery Patent (net) Investment in equity securities Total assets Liabilities and Shareholders Equity Accounts payable Accumulated depreciation Notes payable Appreciation of inventory Common stock (authorized and issued 120,000 shares of no par stock) Retained earnings Total liabilities and shareholders equity $ 770,000 310,000 80,000...

  • On January 1, 2020, Allan acquires 8 percent of Bellevue’s outstanding common stock for $41,110. Allan...

    On January 1, 2020, Allan acquires 8 percent of Bellevue’s outstanding common stock for $41,110. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners’ equity. On January 1, 2021, Allan buys an additional 13 percent of Bellevue for $54,560, providing Allan the ability to significantly influence Bellevue’s decisions. During the...

  • 2. On January 1, 2020, Allan acquires 9 percent of Bellevue's outstanding common stock for $40,000....

    2. On January 1, 2020, Allan acquires 9 percent of Bellevue's outstanding common stock for $40,000. Allan classifies the investment as an available-for-sale security and records any unrealized holding gains or losses directly in owners' equity. On January 1, 2021, Allan buys an additional 13 percent of Bellevue for $54,600, providing Allan the ability to significantly influence Bellevue's decisions. During...

  • On January 4, 2021, Runyan Bakery paid $334 million for 10 million shares of Lavery Labeling...

    On January 4, 2021, Runyan Bakery paid $334 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $4 per...

  • On January 4, 2021, Runyan Bakery paid $338 million for 10 million shares of Lavery Labeling...

    On January 4, 2021, Runyan Bakery paid $338 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $2 per...

  • On January 4, 2021, Runyan Bakery paid $342 million for 10 million shares of Lavery Labeling...

    On January 4, 2021, Runyan Bakery paid $342 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $4 per...

  • On January 4, 2021, Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling...

    On January 4, 2021, Runyan Bakery paid $332 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $4 per...

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