QUESTION 3Kanta Industries purchased 25% (a significant influence) of Reagan's 100,000 outstanding shares of common stock for $9/share on January 1, 2023.On June 15, Reagan declared and paid a cash dividend of $1 per share.Reagan reported net income of $285,000 on December 31, 2023.The Fair Value of Reagan's common stock was $12/share on Decrember 31, 2023.Prepare ALL necessary journal entries for 2023 for Kanta Industries.

The equity method is used to record the investment made by one company to another company where the…

Answered: QUESTION 3 Kanta Industries purchased…

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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QUESTION 4 Emma Consulting had previously purchased 2838 shares of treasury stock for $7 per share. Emma then sold 1381 shares of the treasury stock for $13 per share. The credit to treasury stock to record the sale would be $
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View Policies Current Attempt in Progress Crane Company issued 9000 shares of its $5 par value common stock having a fair value of $20 per share and 14000 shares of its $10 par value preferred stock having a fair value of $20 per share for a lump sum of $510000. How much of the proceeds would be allocated to the common stock? O $180000 O $310435 O $199565 O $206250 Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air
Problem 11. On May 5, 2019, MacDougal Corp. exchanged 2,000 shares of its P25 par value ordinary treasury shares for a patent owned by Masset Co. The treasury shares were acquired in 2018 for P45,000. At May 5, 2019, MacDougal's ordinary shares was quoted at P38 per share, and the patent had a carrying value of P68,000 on Masset's books. MacDougal should record the patent at what amount?
Situation 1Waterway Cosmetics acquired 10% of the 189,000 shares of common stock of Martinez Fashion at a total cost of $12 per share on March 18, 2020. On June 30, Martinez declared and paid $77,300 cash dividend to all stockholders. On December 31, Martinez reported net income of $122,300 for the year. At December 31, the market price of Martinez Fashion was $13 per share.Situation 2Wildhorse, Inc. obtained significant influence over Seles Corporation by buying 30% of Seles’s 32,100 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Seles declared and paid cash dividends of $32,700 to all stockholders. On December 31, Seles reported a net income of $78,800 for the year.Prepare all necessary journal entries in 2020 for both situations.
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22-On January, 2019, ABC Company acquired 30% percent of the voting shares of XYZ Company for OMR 300,000. The investment gives ABC, significant influence over the affairs of XYZ Company. During the year ending December 31, 2019, XYZ Company earned OMR 100,000 Net Income and paid dividend of OMR 70,000. What is the journal entry in the books of ABC Company for the share in the net income under equity method? a. Debit Cash Account OMR 21,000; Credit Investment Income Account OMR 21,000 b. Debit Investment Account OMR 30,000; Credit Investment Income Account OMR 30,000 c. Debit Cash Account OMR 30,000; Credit Investment Account OMR 30,000 d. Debit Investment Account OMR 21,000; Credit Dividend Income Account OMR 21,000 Clear my choicevvv
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Question 58 Choose the correct answer from the choices.
Situation 1 Pharoah Tables acquired 15% of the 4,800,000 shares of common stock of Robot Sofas at a total cost of $7.80 per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $267,000 cash dividend. On December 31, Robot Sofas market price was $8.30 per share and the company reported net income of $625,000 for the year. Situation 2 On January 1, 2025, Coronado Company purchased 40% of Santos Corporation 525,000 outstanding shares of common stock at a total cost of $14 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos reported a net income of $928,000 for the year and the market price of its common stock was $15 per share. Prepare all necessary journal entries in 2025 for both situations. (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…
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