On January 1, 2020, HND Industrial ProductsCompany acquired 400,000 shares at $ 50per share of XYZ Cables Company, whichrepresents 20% ownership.RequiredRecord the following transactions in thebooks of HND Industrial Products Company.(assuming there is significant influence andinsignificant influence)(a) Record the acquisition entry done by HNDCompany on January 1, 2020(b) The XYZ Cables had reported net incomeof $ 800,000 for the year 2020(c) XYZ cables announced and paid cashdividends of $ 200,000,(d) On December 31, 2020, XYZ Cables shareshave been valued at $ 52 per share, and HNDstill owns 400,000 sharesOn December 31, 2021, XYZ Cables shareswould be valued at $ 51 per share, and HNDCompany will own 400,000 shares

Common stock: Common stock is called equity shares. Its shareholders are the owners of the company…

On January 1, 2020, HND Industrial Products Company acquired 400,000 shares at $ 50 per share of XYZ Cables Company, which represents 20% ownership. Required Record the following transactions in the books of HND Industrial Products Company (assuming there is significant influence and insignificant influence)

On January 1, 2020, HND Industrial Products Company acquired 400,000 shares at $ 50 per share of XYZ Cables Company, which represents 20% ownership. Required Record the following transactions in the books of HND Industrial Products Company (assuming there is significant influence and insignificant influence)

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

On January 1, 2020, HND Industrial Products
Company acquired 400,000 shares at $ 50
per share of XYZ Cables Company, which
represents 20% ownership.
Required
Record the following transactions in the
books of HND Industrial Products Company.
(assuming there is significant influence and
insignificant influence)
(a) Record the acquisition entry done by HND
Company on January 1, 2020
(b) The XYZ Cables had reported net income
of $ 800,000 for the year 2020
(c) XYZ cables announced and paid cash
dividends of $ 200,000,
(d) On December 31, 2020, XYZ Cables shares
have been valued at $ 52 per share, and HND
still owns 400,000 shares
On December 31, 2021, XYZ Cables shares
would be valued at $ 51 per share, and HND
Company will own 400,000 shares

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