Jean Company own 90% Equity of Lars Company in December 31, 2016, is shown as follows: Jean Lars Common Stock S10.000 S Retained Earnings 800.000.000 S 300.000.000s 1.100.000.000 S 640.000.000 250.000.000 Total 890.000.000 Jean Company's investment account as of this date is equal to its book value. On January 1, 2017, Lars Issued 25.000 new shares at $14.000 per share Question: 1. Calculate the precentage owned by Jean in Lars if the 25.000 shares were purchased entirely by Lars. 2. Calculate the precentage owned by Jean in Lars if the 25,000 new shares are purchased entirely by the public. 3. If the 25,000 new shares were purchased entirely by public, prepare the journal entries required by Jean Company to calculate the effect of Jean Investment in Lars. Assuming no gain or loss is recognized

Jean Company own 90% Equity of Lars Company in December 31, 2016, is shown as follows: Jean Lars Common Stock S10.000 S Retained Earnings 800.000.000 S 300.000.000s 1.100.000.000 S 640.000.000 250.000.000 Total 890.000.000 Jean Company's investment account as of this date is equal to its book value. On January 1, 2017, Lars Issued 25.000 new shares at $14.000 per share Question: 1. Calculate the precentage owned by Jean in Lars if the 25.000 shares were purchased entirely by Lars. 2. Calculate the precentage owned by Jean in Lars if the 25,000 new shares are purchased entirely by the public. 3. If the 25,000 new shares were purchased entirely by public, prepare the journal entries required by Jean Company to calculate the effect of Jean Investment in Lars. Assuming no gain or loss is recognized

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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Question

Jean Company own 90% Equity of Lars Company in December 31,
2016, is shown as follows:
Jean
Lars
Common Stock $10.000 S
Retained Earnings
800.000.000 S
300.000.000S
1.100.000.000S
640.000.000
250.000.000
Total
890.000.000
Jean Company's investment account as of this date is equal to its
book value. On January 1, 2017, Lars Issued 25.000 new shares at
$14.000 per share
Question:
1. Calculate the precentage owned by Jean in Lars if the 25.000
shares were purchased entirely by Lars.
2. Calculate the precentage owned by Jean in Lars if the 25,000
new shares are purchased entirely by the public.
3. If the 25,000 new shares were purchased entirely by public,
prepare the journal entries required by Jean Company to calculate
the effect of Jean Investment in Lars. Assuming no gain or loss is
recognized.

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