Problem 15-5B Accounting for long-term investments in stock with significant influence P5Brinkley Company, which began operations in Year 1, had the following transactions and events in its long-term investments.Year 1Jan. 5 Brinkley purchased 20,000 shares (25% of total) of Bloch's common stock for $200,500.Aug. 1 Bloch declared and paid a cash dividend of $1.05 per share.Dec. 31 Bloch's net income for the year is $82,000, and the fair value of its stock is $11.90 per share.Year 2Aug. 1 Bloch declared and paid a cash dividend of $1.35 per share.Dec. 31 Bloch's net income for the year is $78,000, and the fair value of its stock is $13.65 per share.Year 3Jan. 8 Brinkley sold 5% (equal to 1,000 shares) of its investment in Bloch for $12,025 cash.RequiredPrepare journal entries to record these transactions and events for Brinkley. Assume that Brinkley has a significant influenceover Bloch with its 25% share.

Definition:Equity investments: The financial instruments which claim ownership in the issuing…

Brinkley purchased 20,000 shares (25% of total) of Bloch's common stock for $200,500. Bloch declared and paid a cash dividend of $1.05 per share. Bloch's net income for the year is $82,000, and the fair value of its stock is $11.90 per sha Bloch declared and paid a cash dividend of $1.35 per share. Bloch's net income for the year is $78,000, and the fair value of its stock is $13.65 per sha Brinkley sold 5% (equal to 1,000 shares) of its investment in Bloch for $12,025 cash.

Brinkley purchased 20,000 shares (25% of total) of Bloch's common stock for $200,500. Bloch declared and paid a cash dividend of $1.05 per share. Bloch's net income for the year is $82,000, and the fair value of its stock is $11.90 per sha Bloch declared and paid a cash dividend of $1.35 per share. Bloch's net income for the year is $78,000, and the fair value of its stock is $13.65 per sha Brinkley sold 5% (equal to 1,000 shares) of its investment in Bloch for $12,025 cash.

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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