On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for $210,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $360,000. During 2024, Burks reported net income of $80,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2024 for $40,000. 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 2 Transaction 3 Note: Enter debits before credits. e Record the income on intra-entity sale. 4 5 General Journal Investment in Burks, Incorporated Equity in investee income Debit 4,000 Credit 4,000
On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for $210,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $360,000. During 2024, Burks reported net income of $80,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2024 for $40,000. 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 2 Transaction 3 Note: Enter debits before credits. e Record the income on intra-entity sale. 4 5 General Journal Investment in Burks, Incorporated Equity in investee income Debit 4,000 Credit 4,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me
![On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for $210,000. On that date, Burks's
balance sheet disclosed net assets with both a fair and book value of $360,000. During 2024, Burks reported net income of $80,000
and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2024 for $40,000. 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
2
Transaction
e
3
Note: Enter debits before credits.
Record the income on intra-entity sale.
4
5
General Journal
Investment in Burks, Incorporated
Equity in investee income
Debit
4,000
Credit
4,000
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa49887a4-eeec-478a-bb8e-067c0eca2dee%2F70249680-e0ba-460f-94ca-24c5a4af9d6a%2F9z6e5f_processed.png&w=3840&q=75)
Transcribed Image Text:On January 1, 2024, Alamar Corporation acquired a 40 percent interest in Burks, Incorporated, for $210,000. On that date, Burks's
balance sheet disclosed net assets with both a fair and book value of $360,000. During 2024, Burks reported net income of $80,000
and declared and paid cash dividends of $25,000. Alamar sold inventory costing $30,000 to Burks during 2024 for $40,000. 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
2
Transaction
e
3
Note: Enter debits before credits.
Record the income on intra-entity sale.
4
5
General Journal
Investment in Burks, Incorporated
Equity in investee income
Debit
4,000
Credit
4,000
>
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