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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 valu 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 fir account field. View transaction list Journal entry worksheet 1 2 Transaction e 3 Record the income on intra-entity sale. Note: Enter debits before credits. 4 5 General Journal Debit Credit

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 valu 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 fir account field. View transaction list Journal entry worksheet 1 2 Transaction e 3 Record the income on intra-entity sale. Note: Enter debits before credits. 4 5 General Journal Debit Credit

FINANCIAL ACCOUNTING
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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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
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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