9. Berry's Concrete acquired 25% of the outstandingcommon stock of Blakeley, Inc. on January 1, 2010,by paying $2,000,000 for 80,000 shares. Blakeleydeclared and paid a $0.50 per share cash dividendon June 30 and again on December 31, 2010.Blakeley reported net income of $1200,000 for theyear. At December 31, 2010, the market price ofBlakeley's common stock was $28 per share.InstructionsPrepare the journal entries for Berry's Concrete for2010 assuming Berry's cannot exercise significantinfluence over Blakeley. (Use the cost method andassume Blakeley common stock should be classified asavailable-for-sale.)

Journal entry is a primary entry that records the financial transactions initially.

. Berry's Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010, by paying $2,000,000 for 80,000 shares. Blakeley declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2010. Blakeley reported net income of $1200,000 for the

. Berry's Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010, by paying $2,000,000 for 80,000 shares. Blakeley declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2010. Blakeley reported net income of $1200,000 for the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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