Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December 31, 2025. The purchase price was $3,657,000. Bloom declared and paid $1.30 per share cash dividends on June 18, 2026, and on November 29, 2026. Bloom reported net income of $1,260,000 for 2026. The fair value of Bloom common stock was $27 per share at December 31, 2026. (a) Prepare the journal entries for Pharoah Co. for 2026, assuming that Pharoah cannot exercise significant influence over Bloom. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December 31, 2025. The purchase price was $3,657,000. Bloom declared and paid $1.30 per share cash dividends on June 18, 2026, and on November 29, 2026. Bloom reported net income of $1,260,000 for 2026. The fair value of Bloom common stock was $27 per share at December 31, 2026. (a) Prepare the journal entries for Pharoah Co. for 2026, assuming that Pharoah cannot exercise significant influence over Bloom. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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![Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December 31, 2025. The purchase
price was $3,657,000. Bloom declared and paid $1.30 per share cash dividends on June 18, 2026, and on November 29, 2026. Bloom
reported net income of $1,260,000 for 2026. The fair value of Bloom common stock was $27 per share at December 31, 2026.
(a)
Prepare the journal entries for Pharoah Co. for 2026, assuming that Pharoah cannot exercise significant influence over Bloom.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order
presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb88d09dc-60ed-4d10-8864-dfd0f0ce6289%2F11df48f6-56a5-4a14-8e08-fb3ad0bf7496%2Fy9wer6c_processed.png&w=3840&q=75)
Transcribed Image Text:Pharoah Co. acquired 25% of the 530,000 shares of outstanding common stock of Bloom Inc. on December 31, 2025. The purchase
price was $3,657,000. Bloom declared and paid $1.30 per share cash dividends on June 18, 2026, and on November 29, 2026. Bloom
reported net income of $1,260,000 for 2026. The fair value of Bloom common stock was $27 per share at December 31, 2026.
(a)
Prepare the journal entries for Pharoah Co. for 2026, assuming that Pharoah cannot exercise significant influence over Bloom.
(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order
presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
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