roduces and sells theater set designs and costumes. The company began operations on January 1, 2016. The following transac ecurities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6: 1. ec. D 10 Purchased an influential interest in Imboden Inc. for $770,000 by purchasing 99,200 shares directly from the estate of the founder of Imboden Inc. There are 320,000 shares of Imboden Inc. stock outstanding. Received $57,000 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $470,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. 31
roduces and sells theater set designs and costumes. The company began operations on January 1, 2016. The following transac ecurities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6: 1. ec. D 10 Purchased an influential interest in Imboden Inc. for $770,000 by purchasing 99,200 shares directly from the estate of the founder of Imboden Inc. There are 320,000 shares of Imboden Inc. stock outstanding. Received $57,000 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of $470,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with this pl
Transcribed Image Text:Forte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, 2016. The following transaction
relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31, 20Y6:
F3
Jan.
4
Dec. 31
F4
Required:
1. Journalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW
journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will
automatically indent a credit entry when a credit amount is entered.
2. Should Forte Inc.'s investment in Imboden Inc. be reported at fair value on its financial statements for the year ending December 31,
20Y6?
R
10
LL
F
Purchased an influential interest in Imboden Inc. for $770,000 by purchasing 99,200 shares directly
from the estate of the founder of Imboden Inc. There are 320,000 shares of Imboden Inc. stock
outstanding.
Received $57,000 of cash dividends on Imboden Inc. stock. Imboden Inc. reported net income of
$470,000 in 20Y6. Forte Inc. uses the equity method of accounting for its investment in Imboden Inc.
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