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View Policies Show Attempt History Current Attempt in Progress Waterway Paul Inc. acquired 20% of the outstanding common stock of Theresa Crane Inc. on December 31, 2025. The purchase price was $1,357,500 for 54,300 shares. Crane Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2026. Crane reported net income of $778,000 for 2026. The fair value of Crane's stock was $28 per share at December 31, 2026. Assume that the security is a trading security. (a) Your answer is partially correct. Prepare the journal entries for Waterway Paul Inc. for 2025 and 2026, assuming that Paul cannot exercise significant influence over Crane. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation , 2025 Equity Investments Cash , 2026 Cash Dividend Revenue .2026 Cash Dividend Revenue (To record dividend.) Fair Value Adjustment Unrealized Holding Gain or Loss - Income (To record fair value.) Debit 1,357,500 162900 Credit 1,357,500 162900

View Policies Show Attempt History Current Attempt in Progress Waterway Paul Inc. acquired 20% of the outstanding common stock of Theresa Crane Inc. on December 31, 2025. The purchase price was $1,357,500 for 54,300 shares. Crane Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2026. Crane reported net income of $778,000 for 2026. The fair value of Crane's stock was $28 per share at December 31, 2026. Assume that the security is a trading security. (a) Your answer is partially correct. Prepare the journal entries for Waterway Paul Inc. for 2025 and 2026, assuming that Paul cannot exercise significant influence over Crane. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation , 2025 Equity Investments Cash , 2026 Cash Dividend Revenue .2026 Cash Dividend Revenue (To record dividend.) Fair Value Adjustment Unrealized Holding Gain or Loss - Income (To record fair value.) Debit 1,357,500 162900 Credit 1,357,500 162900

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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Please help with these empty entries i can not finish.

View Policies Show Attempt History Current Attempt in Progress Waterway Paul Inc. acquired 20% of the outstanding common stock of Theresa Crane Inc. on December 31, 2025. The purchase price was $1,357,500 for 54,300 shares. Crane Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2026. Crane reported net income of $778,000 for 2026. The fair value of Crane's stock was $28 per share at December 31, 2026. Assume that the security is a trading security. (a) Your answer is partially correct.
Transcribed Image Text:View Policies Show Attempt History Current Attempt in Progress Waterway Paul Inc. acquired 20% of the outstanding common stock of Theresa Crane Inc. on December 31, 2025. The purchase price was $1,357,500 for 54,300 shares. Crane Inc. declared and paid an $0.75 per share cash dividend on June 30 and on December 31, 2026. Crane reported net income of $778,000 for 2026. The fair value of Crane's stock was $28 per share at December 31, 2026. Assume that the security is a trading security. (a) Your answer is partially correct.
Prepare the journal entries for Waterway Paul Inc. for 2025 and 2026, assuming that Paul cannot exercise significant influence over Crane. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation , 2025 Equity Investments Cash , 2026 Cash Dividend Revenue .2026 Cash Dividend Revenue (To record dividend.) Fair Value Adjustment Unrealized Holding Gain or Loss - Income (To record fair value.) Debit 1,357,500 162900 Credit 1,357,500 162900
Transcribed Image Text:Prepare the journal entries for Waterway Paul Inc. for 2025 and 2026, assuming that Paul cannot exercise significant influence over Crane. (List all debit entries before credit entries. Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation , 2025 Equity Investments Cash , 2026 Cash Dividend Revenue .2026 Cash Dividend Revenue (To record dividend.) Fair Value Adjustment Unrealized Holding Gain or Loss - Income (To record fair value.) Debit 1,357,500 162900 Credit 1,357,500 162900
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