Porter Corporation purchased 80% of the common stock of Salem Company for $850,000 on January 1, 2013. During the next three years, Salem had the following income and Dividends paid: Year Income Dividends 2013 $100,000 $25,000 2014 $110,000 $35,000 2015 $170,000 $60,000 Prepare the journal entries made under both methods and then compute the ending balance in the "investment" account under both methods.
Q: Please dont use any AI. It's strictly prohibited. Help me asap please
A: Since Cole chose to receive additional shares instead of cash, which is a typical stock dividend…
Q: Give me correct answer with explanation.
A: The objective of the question is to calculate the amount of fixed manufacturing overhead cost…
Q: Comfort Ride manufactures seats for airplanes. The company has the capacity to produce 100,000 seats…
A: Dear student, below is an answer to your assignment. Please follow it closely for a clear…
Q: ompany percent first mortgage bonds ure in terest semiannually on January 1 and July 1. Prime…
A: Corporate Bonds -Corporate bonds are obligations that corporations issue to both public and private…
Q: Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of…
A: To compute the cost of the car-washing machine, we need to add up all the costs associated with the…
Q: J&J Materials and Construction Corporation produces fertilizer and distributes the product by using…
A: Flexible budget variance is the difference between flexible budget amount and actual amount.…
Q: Jerrico Wallboard Co. had a beginning inventory of 10,000 shoes on January 1, 20XX. The costs…
A: The Gross Profit is the difference between Sales and cost of goods sold. It is calculated with the…
Q: Orion Corporation has established the following standards for the prime costs of one unit of its…
A: Variance analysis is a financial management technique used to identify and analyze the difference…
Q: Required information [The following information applies to the questions displayed below.] Black…
A: The budget is prepared to estimate the requirements for the period. The direct labor budget is…
Q: Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting…
A: It is the process of making decisions that involve the management of costs in order to achieve…
Q: Coronado Services Ltd. follows ASPE and had earned accounting income before taxes of $521,000 for…
A: Permanent differences arise when certain items affect taxable income and accounting income…
Q: i need the answer quickly
A: The acquisition process may be characterized as the exchange of a specified sum of money for the…
Q: Sandhill's Market recorded the following events involving a recent purchase of inventory: (1)…
A: As per dual concept of accounting, every transaction has dual impact on the books of accounts, the…
Q: Griffin Shoe Company records Sales Returns and Allowances, Sales Discounts, and Credit Card…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=172ba398-6ec1-4c22-982d-b53 The…
A: The objective of the question is to prepare the necessary journal entries for Oriole Cosmetics and…
Q: Curl Limited is considering whether or not to accept an order. Production of the order would require…
A: Relevant cost is a term that describes the changing costs of a particular decision. Businesses use…
Q: Sales Variable costs Fixed costs $3,608,000 902,000 2,250,000 Houston-based Advanced Electronics…
A: Analysis of Houston-Based Advanced Electronics1. Current Income and Sales for Double Income (US…
Q: The DAC-59183 company's total overhead cost at various levels of activity is presented below: Month…
A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…
Q: xercise 13-19A (Algo) Prepare a trial balance LO 13-3 Required On December 31, Year 2, Morgan…
A: Trial Balance is a statement containing all ledger account balances both debit and credit. It is…
Q: Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit…
A: Depreciation is referred to a method of expensing the cost of a capital asset over its useful life.…
Q: Blossom Company had the following transactions for the month of June: Purchases Sales June 1…
A: The inventory can be valued using various methods as FIFO, LIFO and average method. FIFO stands for…
Q: lossom's Recording Studio Pents igital recording of the performance, and a professional music…
A: Total cost refers to the overall cost of production , which includes both fixed and variable…
Q: On 31 December 20X0, Columbia Inc. entered into an agreement with Scotia Ltd. to lease equipment…
A: The objective of the question is to prepare a lease liability amortization table for Columbia Inc.…
Q: Timothy Gates and Prada Singh decide to form a new company, TGF partnership). Timothy is married,…
A: LLC stands for Limited Liability Company. As the name suggests, it is a partnership firm that limits…
Q: Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade…
A: When items of cost are identifiable directly with products or departments such costs are charged to…
Q: relevant quarterly data for the previous three years follow: 2016 Return 2017 Quarter Expenses…
A: High-low method:The high-low method is the method used to segregate the variable cost and the fixed…
Q: Bonus Question #1: What type of product costing systems would the company featured in the video use?…
A: a. Job Order Costing:Job Order Costing is a costing method used by companies that produce unique,…
Q: nterest at 6% every June 30 and December 31. The market interest rate 31, and the company had the…
A: The amortization cost model provides insight into how bond prices change over time due to the…
Q: Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000…
A: BudgetThe report estimating the values for a future period from the past actual values is called a…
Q: Problem #2 - Indirect: Computing cash flows from operations A company reports net income of $8,200…
A: Cash flow statement is a financial statement that records the activities of cash, as to the entry…
Q: 9 01:07:52 HAS-71452 Company uses a job-order costing system. Its plantwide predetermined overhead…
A: Total manufacturing costs is the total cost incurred in the manufacturing of product during the…
Q: Required Information On January 1, 2024, the general ledger of TNT Fireworks includes the following…
A: Balance sheet is one of the financial statements that records details of what the company owns and…
Q: On January 2, Chaz transfers cash of $165,800 to a newly formed corporation for 100% of the stock.…
A: Tax deduction:Tax deduction is the amount that is subtracted from the gross total income to reduce…
Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…
A: Break-Even Point and CVP Analysis is a concept of cost accounting to determine the break-even level…
Q: ! Required information [The following information applies to the questions displayed below.] Hudson…
A: MARGIN OF SAFETYSales Above the Break-Even Point is Called Margin of Safety Sales. Margin of Safety…
Q: Amani Hypermarket is following the Historical Cost accounting Method and furnishes you the following…
A: The valuation of closing stock refers to the process of determining the monetary value of the…
Q: Reddy Corporation reported the following accounts and amounts (in millions) in its financial…
A: Balance sheet is the financial statement which is prepared by the entity for the purpose of…
Q: An alternative name for Bad Debt Expense is Select one: O A. Office Expense. OB. Interest Expense.…
A: The entity makes sales on account as well as sales on cash. The company makes sales on account to…
Q: please solve all requirements
A: Part 1: Answer:Estimated grams of raw material to be purchased and the cost of raw material…
Q: A saturated solution contains 1.80g KCIO3 in 25.0mL water at 20.0 degree celcius. Determine the…
A: The objective of the question is to determine the solubility of KCIO3 in water at 20 degrees Celsius…
Q: Req 1 Req 2A Req 2B Compute the variance for setup cost during the month, assuming that the actual…
A: Given: Actual setup cost = $3,000 Flexible budget setup cost = ? Variance = Actual setup cost -…
Q: October 15. October 20 Purchase 82 units of inventory from Waluigi Company for $52 per unit. October…
A: The journal entries are prepared to record the transactions on regular basis.The FIFO stands for…
Q: What is the primary purpose of financial accounting? A) To control the spending of a company B) To…
A: The primary purpose of financial accounting is to provide a clear and accurate financial picture of…
Q: Revision of Depreciation On January 1, 2021, Blizzards-R-Us purchased a snow-blowing machine for…
A: Depreciation expense is the non-cash expense charged on the non-current assets. It is reported on…
Q: Vail is one of the largest ski resorts in the United States. Suppose that on October 1, 2024, Vail…
A: Revenue is defined as any monetary payment received from a customer when an entity carries out its…
Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…
A: Cash budget is the statement prepared by the entity for the purpose of estimating the cash receipts…
Q: Date eginning entory. Activities Units Acquired at Cost Units sold at Retail January 1 Beginning…
A: Inventory:The raw materials used to produce goods as well as the goods that are available for sale…
Q: Bramble Design Inc., a high-fashion women's dress manufacturer, is planning to market a new cocktail…
A: Operating income is a measure of profitability. It is the revenue generated by a company after…
Q: Manny, a single taxpayer, earns $67,000 per year in taxable income and an additional $12,200 per…
A: Income Tax is a statutory or mandatory tax payable by individuals and other entities on the taxable…
Q: Milan Manufacturing Company has identified three cost pools to allocate overhead costs. The…
A: The objective of the question is to calculate the overhead cost per direct labor-hour for the Milan…
Porter Corporation purchased 80% of the common stock of Salem Company for $850,000 on January 1, 2013. During the next three years, Salem had the following income and Dividends paid: Year Income Dividends 2013 $100,000 $25,000 2014 $110,000 $35,000 2015 $170,000 $60,000 Prepare the
Step by step
Solved in 6 steps
- The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $ 400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost and equity method, record all entries from January 1, 2009 to December 31, 2010 using the following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy purchased 18% of HIJ CorporationOn January 1 2016, Mooza Company purchased 80,000 of the 100,000 outstanding shares of common stock of Hajar Company as a longer-term investment. The purchase price of OMR 4,850,000 was paid in cash. Additional data on Singer Company for the four years following the purchase are (Photo) Required: Prepare journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Mooza Company for the four years.a) Ahmed uses the cost method to account for its investment in Hajar.b) Ahmed uses the partial equity method to account for its investment Hajar.Bar Corporation has been looking to expand its operations and has decided to acquire the assets of Vicker Company and Kendal Company. Bar will issue 30,000 shares of its $10 par common stock to acquire the net assets of Vicker Company and will issue 15,000 shares to acquire the net assets of Kendal Company.Vicker and Kendal have the following balance sheets as of December 31, 2015:Assets Vicker KendalAccounts receivable . . . . . . . . . . . . . . . . . $ 200,000 $ 80,000Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 85,000Property, plant, and equipment:Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000 50,000Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .500,000 300,000Accumulated depreciation. . . . . . . . .. . . (150,000) (110,000)Total assets . . . . . . . . . .…
- On April 1, 2024, Sandhill Company purchased 46,400 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Save for Later Account Titles Debit Credit Attempts: 0 of 1 used Submit AnswerOn April 1, 2024, Sheridan Company purchased 34,400 common shares in Ecotown Ltd. for $18 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $20 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries) Date 10 Account Titles Debit CreditAssume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1, 2015, for $300,000. During 2015, Sheboygan Corp. reported net income of $160,000 and paid total dividends of $60,000. If Horicon uses the equity method to account for its investment, the balance in the investment account on December 31, 2015, will be:
- On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? Group of answer choices P1,060,000 Cr. P1,035,000 Cr. No entry P40,000 Dr.On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? a. P1,035,000 Cr. b. No entry c. P40,000 Dr. d. P1,060,000 Cr.On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? O P1.060.000 Cr. O No entry O P40,000 Dr. O P1.035.000 Cr.
- On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? A. No entry B. 40,000 debit C. 1,035,000 credit D. 1,060,000 creditOn July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? P1,035,000 Cr. P1,060,000 Cr. P40,000 Dr. No entry How much will the Investment in Associate account be debited/credited in 2019? P960,000 Cr. No Entry P15,000 Dr. P75,000 Dr.Cardinal Company acquires an 80% interest in Huron Company common stock for $420,000 cash on January 1, 2015. At that time, Huron Company has the following balance sheet: (attached)Prepare a determination and distribution of excess schedule for the investment in Huron Company (a value analysis is not needed). Prepare journal entries that Cardinal Company would make on its books to record income earned and/or dividends received on its investment in Huron Company during 2015 and 2016 under the following methods: simple equity, sophisticated equity, and cost.