**Equity Investments: 20%-50% Ownership**On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4, Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31, 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $365,640.Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank.- **Jan. 2, 20Y4 - Purchase** - [Dropdown] [Amount] - [Dropdown] [Amount]- **Dec. 31, 20Y4 - Income** - [Dropdown] [Amount] - [Dropdown] [Amount]- **Dec. 31, 20Y4 - Dividends** - [Dropdown] [Amount] - [Dropdown] [Amount]- **Jan. 31, 20Y5 - Sale** - [Dropdown] [Amount] - [Dropdown] [Amount]

Journal Entry: Business transactions are recorded in an accounting system for an organization…

Answered: On January 2, 20Y4, Whitworth Company…

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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Acme Company owns 35% of Superior Company. Superior Company declared and paid $44,000 cash dividends for the year. Acme Company's journal entry to record the dividends includes a: Ocredit to the Investment account for $44.000. credit to Dividend Revenue for $15.400. credit to the Investment account for $15,400. credit to Dividend Revenue for $44,000. None of the above. C
On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000. At December 31, Tamlee Co. declared and paid a cash dividend of $50,000 and reported a net income of $160,000. REQUIRED: Prepare the journal entries for the Criquet Co. under each of the independent circumstances: 1. Criquet Co. acquires a 10% interest in the Tamlee Co. 2. Criquet Co. acquires a 25% interest in the Tamlee Co.
On January 2, 20Y4, Whitworth Company acquired 37% of the outstanding stock of Aloof Company for $320,000. For the year ended December 31, 20Y4, Aloof Company earned income of $83,000 and paid dividends of $26,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $338,090. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Income - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Dividends - Select - - Select - - Select - - Select - Jan. 31, 20Y5 - Sale - Select - - Select - - Select - - Select - - Select - - Select -
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What total amount shall be reported in profit or loss in the Inn Corporation had 30,000 ordinary shares of NPA Company which it acquired during Year 2 for a total consideration of P1,800,000, including P30,000 directly attributable costs. The shares were acquired for trading purposes. On December 31, Year 2, the NPA shares were selling at P65 per share. In July Year 3, Inn Corporation received a 20% bonus issue. Subsequently during the year, it sold 15,000 shares at 70 per share. The fair value of NPA ordinary at December 31, Year 3 was P72 per share. Required: statement of comprehensive income for Year 3?
Parilo Company acquired $183,600 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $52,200 of the bonds for 96. Journalize the entries to record the following under the cost method:
RR Company purchased 12,000 common shares of SS Inc. on January 1, Year 1 for $180,000. SS inc. had 80,000 common shares outstanding. The following information relates to SS Inc.: Net Income (loss) $300,000 $(180,000) Dividends paid Market value/share at December 31 $75,000 $40,000 Year 1 $17 $18 Year 2 On January 1, Year 3, RR sold Investment in SS Inc. shares for $20 per share. RR has a December 31 year end. Required: Show all calculations for full marks. i) Prepare the journal entries for Years I and 2 and on January 1, Year 3 assuming the RR elects to use FVOCI to account for its investment in SS ii) How much is the change in Retained Earnings from January 1, Year 1 to January 1, Year 3? Show all #s for each year to support your total change.
Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $76,000 and declared dividends of $17,800 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $fill in the blank 2
On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale
Please answer part D a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000. DATE Debit Credit X/X b. For the year ended December 31, Harris Company earned income of $50,000. DATE Debit Credit X/X c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE Debit Credit X/X d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit X/X
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