The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $ 400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost and equity method, record all entries from January 1, 2009 to December 31, 2010 using the following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy purchased 18% of HIJ Corporation

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase
investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at
December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on
January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $
400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends
of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost
and equity method, record all entries from January 1, 2009 to December 31, 2010 using the
following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy
purchased 18% of HIJ Corporation
Transcribed Image Text:The following information relates to Crip Crippy Investment of HIJ Corporation. (1). Purchase investment for $1,000,000 on January 1, 2009 (2) HIJ Corporation had earnings of $600,00 at December 31, 2009 and declared dividends of $400,000. (3) The dividends were paid on January 2, 2010. (4) On July 1, 2010 Crip Crippy sold fifty percent of its interest for $ 400,000 (5) At June 30, 2010, HIJ had earnings of $600,000 for the year and paid dividends of $200,000 for shares outstanding as at November 30, 2010. Requiement: Using the cost and equity method, record all entries from January 1, 2009 to December 31, 2010 using the following scenarios (a) Crip Crippy purchased 40% of HIJ Corporation (b) Crip Crippy purchased 18% of HIJ Corporation
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