On January 1, 2021, Anna Inc. owned 75% of the common stock of Jill Co. On that date, Jill'sstockholders' equity accounts had the following balances:Common stock ($6 par value) $ 300,000Additional paid-in capital120,000Retained earningsTotal stockholders' equityThe balance in Anna's Investment in Jill Co. account was $570,000, and the noncontrolling interestwas $190,000. On January 1, 2021, Jill Co. sold 10,000 shares of previously unissued common stockfor $12 per share. Anna did not acquire any of these shares.What is the balance in Anna Inc's Investment in Jill Co. account following the sale of the 10,000shares of common stock?O $403,000.340,000$760,000O $550,000.O $570,000.O $660,000.@ $880,000.

Investment means an asset purchased in expectation of earning a return on such investment in future…

Answered: On January 1, 2021, Anna Inc. owned 75%…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2021: Preferred stock—$100 par, nonvoting and nonparticipating, 8% cumulative dividend $ 2,200,000 Common stock—$20 par value 4,200,000 Retained earnings 10,200,000 Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,430,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 30-year remaining life. During 2021, Smith reports earning $650,000 in net income and declares $560,000 in cash dividends. Haried applies the equity method to this investment. What is the noncontrolling interest's share of consolidated net income for this period? What is the balance in the Investment in Smith account as of December 31, 2021? What consolidation entries are needed for 2021?
The company. W reflects the following balances in the shareholders' equity section as of July 1, 2019. Capital in common shares, issued and outstanding 20,000 shares, $ 10 par value $ 200,000 Contributed capital in excess of par value 20,000 Retained Earnings 120,000 W carried out the following transactions when acquiring some of its own shares: to. He acquired 2,000 shares at $ 15 / share. b. It issued 1,200 of the 2,000 shares acquired at $ 17 / share. c. It issued 750 of the 2,000 shares acquired at $ 10 / share. d. It canceled the certificates of the remaining 50 shares. Required: Prepare journal entries for transactions a through d above. Suppose they were done in chronological order and the cost method is used to account for portfolio stocks.
On January 1, 2024, Dolar Incorporated had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 241,000 shares issued $241,000 Paid-in capital-excess of par, common 482,000 Paid-in capital-excess of par, preferred. 195,000 Preferred stock, $100 par, 19,500 shares outstanding 1,950,000 Retained earnings Treasury stock, at cost, 4,100 shares 3,900,000 20,500 During 2024, Dolar Incorporated had several transactions relating to common stock. January 15: February 17: April 10: July 18: December 1: December 28: Required: Declared a property dividend of 100,000 shares of Burak Company (book value $11.9 per share, fair value $9.95 per share). Distributed the property dividend. A 2-for-1 stock split was declared and distributed on outstanding common stock and effected in the form of a stock dividend. (Dolar chose to reduce Paid-in capital-excess of par.) The fair value of the stock was $4 on this date.. Declared and distributed a 4% stock dividend on…
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On December 31, 2022, the equity accounts of Book Creations, Inc., contained the following balances: Common stock ($10 par, 100,000 shares authorized) 30,000 shares issued and outstanding $300,000 Retained earnings $476,600 For the year 2022, the corporation had net income before income taxes of $176,300, income taxes of $35,260, and net income after taxes of $141,040. The corporation’s tax rate is 20 percent.An expansion of the existing plant at a cost of $564,300 is planned. The corporation’s president, who owns 60 percent of the corporation’s common stock, estimates that the expansion would result in an increased net income of approximately $176,300 before interest and taxes. The financial vice president forecasts that the increase would be only $88,150. Management is considering two possibilities for financing: Issuance of 20,000 additional shares of common stock for $29 per share. Issuance of $564,300 face amount, 10-year, 6 percent bonds payable, secured by a…
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On December 31, 2022, the equity accounts of Book Creations, Inc., contained the following balances: Common stock ($10 par, 100,000 shares authorized) 30,000 shares issued and outstanding $300,000 Retained earnings $476,600 For the year 2022, the corporation had net income before income taxes of $176,300, income taxes of $35,260, and net income after taxes of $141,040. The corporation’s tax rate is 20 percent.An expansion of the existing plant at a cost of $564,300 is planned. The corporation’s president, who owns 60 percent of the corporation’s common stock, estimates that the expansion would result in an increased net income of approximately $176,300 before interest and taxes. The financial vice president forecasts that the increase would be only $88,150. Management is considering two possibilities for financing: Issuance of 20,000 additional shares of common stock for $29 per share. Issuance of $564,300 face amount, 10-year, 6 percent bonds payable, secured by a…
Alexander Corporation reports the following components of stockholders' equity at December 31, 2019. Common stock-$25 par value, 60,000 shares authorized, 39,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During 2020, the following transactions affected its stockholders' equity accounts. January 2 Purchased 3,900 shares of its own stock at $25 cash per share. January 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record February 28 Paid the dividend declared on January 7. July 9 Sold 1,560 of its treasury shares at $30 cash per share. August 27 Sold 1,950 of its treasury shares at $20 cash per share. September 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.. October 22 Paid the dividend declared on September 9. December 31 Closed the $61,000 credit balance (from net income)…
Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$100 par, nonvoting and nonparticipating, 8% cumulative dividend Common stock-$20 par value Retained earnings $ 2,000,000 4,000,000 10,000,000 Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,040,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2021, Smith reports earning $450,000 in net income and declares $360,000 in cash dividends. Haried applies the equity method to this investment. a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? c. What consolidation entries are needed for 2021?

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On January 1, 2021, Anna Inc. owned 75% of the common stock of Jill Co. On that date. Jill's stockholders' equity accounts had the following balances: Common stock ($6 par value) $ 300,000 Additional paid-in capital 120,000 Retained earnings 340,000 Total stockholders' equity $760,000