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Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying $651,000 for the 43,400 shares. Carla Vista declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2022. Carla Vista reported net income of $351,000 for the year. At December 31, 2022, the market price of Carla Vista common stock was $25 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.)

Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying $651,000 for the 43,400 shares. Carla Vista declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2022. Carla Vista reported net income of $351,000 for the year. At December 31, 2022, the market price of Carla Vista common stock was $25 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.)

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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answer in text form please (without image), Note: .Every entry should have narration please
Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying $651,000 for the 43,400 shares. Carla Vista declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2022. Carla Vista reported net income of $351,000 for the year. At December 31, 2022, the market price of Carla Vista common stock was $25 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 Jan. 1 V Mar. 15 Sept. 15 Account Titles and Explanation Stock Investments Cash Cash Dividend Revenue Cash Debit 651000 21700 21700 Credit 651000 21700
Transcribed Image Text:Heidebrecht Design acquired 25% of the outstanding common stock of Carla Vista Company on January 1, 2022, by paying $651,000 for the 43,400 shares. Carla Vista declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2022. Carla Vista reported net income of $351,000 for the year. At December 31, 2022, the market price of Carla Vista common stock was $25 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 Jan. 1 V Mar. 15 Sept. 15 Account Titles and Explanation Stock Investments Cash Cash Dividend Revenue Cash Debit 651000 21700 21700 Credit 651000 21700
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