Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6]As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 20% of Nursery SuppliesIncorporated's 20 million shares for $69 million. The fair value and book value of the shares were the same at that time. During theyear, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.50 per share. At the end of the year, thefair value of the shares is $65 million.LRequired:Prepare the appropriate journal entries from the purchase through the end of the year.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answersin millions, (i.e., 10,000,000 should be entered 10).View transaction listJournal entry worksheet12 3Record the inveNote: Enter debits bTransactionsNo journal entry requiredCashFair value adjustmentGain on investment (NI)DebitPrevCredit1 of 1 wwwwww>Next >

Lets understand the basics.The Journal Entry is the primary step in recording the transactions in…

Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 20% of Nursery Supplies Incorporated's 20 million shares for $69 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.50 per share. At the end of the year, the fair value of the shares is $65 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). View transaction list

Exercise 12-20 (Algo) Equity method; purchase; investee income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 20% of Nursery Supplies Incorporated's 20 million shares for $69 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.50 per share. At the end of the year, the fair value of the shares is $65 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10). View transaction list

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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Exercise 16-20 Your answer is partially correct. Try again. On January 1, 2020, Crane Industries had stock outstanding as follows. 6% Cumulative preferred stock, $100 par value, issued and outstanding 9,800 shares $980,000 Common stock, $10 par value, issued and outstanding 206,000 shares 2,060,000 To acquire the net assets of three smaller companies, Crane authorized the issuance of an additional 158,400 common shares. The acquisitions took place as shown below. Date of Acquisition Shares Issued Company A April 1, 2020 48,000 Company B July 1, 2020 80,400 Company C October 1, 2020 30,000 On May 14, 2020, Crane realized a $88,800 (before taxes) insurance gain on discontinued operations. On December 31, 2020, Crane recorded income of $274,800 from continuing operations (after tax).Assuming a 25% tax rate, compute the earnings per share data that should appear on the financial statements of Crane Industries as of December 31, 2020.…
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Exercise 12-20 (Algo) Equity method; purchase; Investee Income; dividends [LO12-6] As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 25% of Nursery Supplies Incorporated's 20 million shares for $61 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $44 million and distributed cash dividends of $1.40 per share. At the end of the year, the fair value of the shares is $57 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in millions, (i.e., 10,000,000 should be entered as 10). No 1 Transactions 1 Investment revenue Cash Answer is not complete. General Journal ** Debit 61,000,000 Credit 61,000,000
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