On January 1, 2024, Alamar Corporation acquired a 38 percent interest in Burks, Incorporated, for $233,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $339,000. During 2024, Burks reported net income of $81,000 and declared and paid cash dividends of $23,000. Alamar sold inventory costing $23,000 to Burks during 2024 for $44,000. Burks used all of this merchandise in its operations during 2024. Required: Prepare all of Alamar's 2024 journal entries to apply the equity method to this investment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Transaction e 2 Record the income on intra-entity sale. Note: Enter debits before credits. 3 Record entry 4 5 General Journal Clear entry Debit Credit View general journal
On January 1, 2024, Alamar Corporation acquired a 38 percent interest in Burks, Incorporated, for $233,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $339,000. During 2024, Burks reported net income of $81,000 and declared and paid cash dividends of $23,000. Alamar sold inventory costing $23,000 to Burks during 2024 for $44,000. Burks used all of this merchandise in its operations during 2024. Required: Prepare all of Alamar's 2024 journal entries to apply the equity method to this investment. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Transaction e 2 Record the income on intra-entity sale. Note: Enter debits before credits. 3 Record entry 4 5 General Journal Clear entry Debit Credit View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2024, Alamar Corporation acquired a 38 percent interest in Burks, Incorporated, for
$233,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value
of $339,000. During 2024, Burks reported net income of $81,000 and declared and paid cash
dividends of $23,000. Alamar sold inventory costing $23,000 to Burks during 2024 for $44,000.
Burks used all of this merchandise in its operations during 2024.
Required:
Prepare all of Alamar's 2024 journal entries to apply the equity method to this investment.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first
account field.
View transaction list
Journal entry worksheet
<
1
Transaction
e
2
Record the income on intra-entity sale.
Note: Enter debits before credits.
3
Record entry
4
5
General Journal
Clear entry
Debit
Credit
View general journal
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