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Business
Accounting
Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Stock Fair Value Adjustment-Trading Gain on Sale of Debt Investments Gain on Sale of Stock Investments Interest Receivable Interest Revenue Loss on Sale of Debt Investments Loss on Sale of Stock Investments No Entry Revenue

Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Stock Fair Value Adjustment-Trading Gain on Sale of Debt Investments Gain on Sale of Stock Investments Interest Receivable Interest Revenue Loss on Sale of Debt Investments Loss on Sale of Stock Investments No Entry Revenue

FINANCIAL ACCOUNTING
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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Account assistance Cash Debt Investments Dividend Revenue Fair Value Adjustment-Available-for-Sale Fair Value Adjustment-Stock Fair Value Adjustment-Trading Gain on Sale of Debt Investments Gain on Sale of Stock Investments Interest Receivable Interest Revenue Loss on Sale of Debt Investments Loss on Sale of Stock Investments No Entry Revenue from Stock Investments Short-Term Investments Stock Investments Unrealized Gain or Loss-Equity Unrealized Gain or Loss-Income
Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying $956,000 for the 47,800 shares. Carla Vista declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2022. Carla Vista reported net income of $326,500 for the year. At December 31, 2022, the market price of Carla Vista common stock was $26 per share. (a) Prepare the journal entries for Heidebrecht Design for 2022 assuming Heidebrecht Design cannot exercise significant influence over Carla Vista. (Use the cost method.) (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date CRO Account Titles and Explanation Debit Credit
Transcribed Image Text:Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying $956,000 for the 47,800 shares. Carla Vista declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2022. Carla Vista reported net income of $326,500 for the year. At December 31, 2022, the market price of Carla Vista common stock was $26 per share. (a) Prepare the journal entries for Heidebrecht Design for 2022 assuming Heidebrecht Design cannot exercise significant influence over Carla Vista. (Use the cost method.) (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date CRO Account Titles and Explanation Debit Credit
Prepare the journal entries for Heidebrecht Design for 2022, assuming Heidebrecht Design can exercise significant influence over Carla Vista. (Use the equity method.) (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when 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.) (c). Date Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Stock Investments Dividend revenue Unrealized gain income Debit Indicate the balance sheet and income statement account balances at December 31, 2022, under each method of accounting. Cost Method Equity Method Revenue from stock investments Attempts: 0 of 2 used Credit Submit Answer
Transcribed Image Text:Prepare the journal entries for Heidebrecht Design for 2022, assuming Heidebrecht Design can exercise significant influence over Carla Vista. (Use the equity method.) (Record journal entries in the order presented in the problem. List all debit entries before credit entries. Credit account titles are automatically indented when 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.) (c). Date Account Titles and Explanation eTextbook and Media List of Accounts Save for Later Stock Investments Dividend revenue Unrealized gain income Debit Indicate the balance sheet and income statement account balances at December 31, 2022, under each method of accounting. Cost Method Equity Method Revenue from stock investments Attempts: 0 of 2 used Credit Submit Answer
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