#2. (Fair Value and Equity Method Compared) Blank Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. . . ● . On December 31, 2020. The purchase price was $3,600,000. on June 18, 2021, Overload declared and paid $1.20 per share cash dividends. On November 29, 2021. Overload reported net income of $1,200,000 for 2021. At December 31, 2021, the fair value of Overload common stock was $27 per share. INSTRUCTIONS (2) Prepare the journal entries for Blank Co., assuming that Blank cannot exercise significant influence over Overload On December 31, 2020 June 18, 2021 November 29, 2021 December 31, 2021 Debit Debit Debit Debit Credit Credit Credit Credit
#2. (Fair Value and Equity Method Compared) Blank Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on December 31, 2020. . . ● . On December 31, 2020. The purchase price was $3,600,000. on June 18, 2021, Overload declared and paid $1.20 per share cash dividends. On November 29, 2021. Overload reported net income of $1,200,000 for 2021. At December 31, 2021, the fair value of Overload common stock was $27 per share. INSTRUCTIONS (2) Prepare the journal entries for Blank Co., assuming that Blank cannot exercise significant influence over Overload On December 31, 2020 June 18, 2021 November 29, 2021 December 31, 2021 Debit Debit Debit Debit Credit Credit Credit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(b) Prepare the journal entries for Blank Co. for, assuming that Blank can exercise significant influence over
Overload.
On December 31, 2020
June 18, 2021
November 29, 2021
December 31, 2021
Debit
Debit
Debit
Debit
Credit
Credit
Credit
Credit
Transcribed Image Text:#2. (Fair Value and Equity Method Compared) Blank Co. acquired 25% of the 500,000 shares of outstanding
common stock of Overload Inc. on December 31, 2020.
.
.
●
.
On December 31, 2020. The purchase price was $3,600,000.
on June 18, 2021, Overload declared and paid $1.20 per share cash dividends.
On November 29, 2021. Overload reported net income of $1,200,000 for 2021.
At December 31, 2021, the fair value of Overload common stock was $27 per share.
INSTRUCTIONS
(2) Prepare the journal entries for Blank Co., assuming that Blank cannot exercise significant influence over
Overload
On December 31, 2020
June 18, 2021
November 29, 2021
December 31, 2021
Debit
Debit
Debit
Debit
Credit
Credit
Credit
Credit
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