Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1, 2020, by paying $684,000 for the 45,600 shares. Oriole declared and paid $0.60 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Oriole reported net income of $356,000 for the year. At December 31, 2020, the market price of Oriole common stock was $26 per share. Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Oriole. (Record journal entries in the order presented in the problem. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 2. Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Oriole. Use the equity method. (Record journal entries in the order presented in the problem. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 3.Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting. Cost Method Equity Method Stock Investments $ $ Dividend revenue Unrealized gain income Revenue from stock investments
Heidebrecht Design acquired 30% of the outstanding common stock of Oriole Company on January 1, 2020, by paying $684,000 for the 45,600 shares. Oriole declared and paid $0.60 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Oriole reported net income of $356,000 for the year. At December 31, 2020, the market price of Oriole common stock was $26 per share. Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Oriole. (Record journal entries in the order presented in the problem. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 2. Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Oriole. Use the equity method. (Record journal entries in the order presented in the problem. 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 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31 3.Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting. Cost Method Equity Method Stock Investments $ $ Dividend revenue Unrealized gain income Revenue from stock investments
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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2. Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Oriole. Use the equity method. (Record journal entries in the order presented in the problem. 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 0 for the amounts.)
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Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
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Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
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Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
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Jan. 1Mar. 15June 15Sept. 15Dec. 15Dec. 31
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3.Indicate the
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