utstanding stock of Marco Company on January 1. Marco reported net income of $76,000 and declared dividends of $17,800 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method?
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Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $76,000 and declared dividends of $17,800 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method?
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- North Ltd acquired $100,000 of shares in South Ltd for trading purposes on 1 January 20X3. Transaction costs of $2,000 were incurred. The fair value of the shares at 31 December 20X3 was $120,500. Choose the account names and calculate the amount that correctly account for this investment on 31 December 20X3 (amount for the credit entry is not required). ENTER YOUR ANSWER IN "Amount" WHOLE NUMBERS WITH NO COMMAS OR DOLLAR SIGNS (EG $1,000,000 SHOULD BE SHOWN AS 1000000; -$1,000,000 SHOULD BE SHOWN AS -1000000). Dr Cr Financial asset Expense Cash Ple Gain in FV-OCI Financial liability Gain in FV-P&L ◆ Amount Amount not required of the question.On January 2, 20Y7, Mikedes Company acquired 30% of the outstanding stock of Violet Company for $720,000. For the year ended December 31, 20Y7, Violet Company earned income of $190,000 and paid dividends of $40,000. On January 31, 20Y8, Mikedes Company sold all of its investment in Violet Company stock for $770,000. Required: Journalize the entries for Mikedes Company for the purchase of the stock, the share of Violet income, the dividends received from Violet Company, and the sale of the Violet Company stock. 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.Mozart Co. owns 35% of Melody Inc. Melody pays $50,000 in cash dividends to its shareholders for the period. Mozart's entry to record the Melody dividend includes a? O Debit to Cash for $50,000 O Credit to Cash for $17,500 Credit to Investment Revenue for $50,000 O Credit to Equity Method Investments for $17,500
- Carla, Inc. purchased 1,810 shares of Oneida Corporation common stock for $84,600. During the year. Oneida paid a cash dividend of $1.10 per share. At year-end, Oneida stock was selling for $43.90 per share. Prepare Carla's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) (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.) (a) (b) (c) Account Titles and Explanation Debit CreditJames Company purchased 900 shares of POP Company's stock as a long-term investment for $57,600. Four years later, 320 shares were sold for $62 per share. What is the amount of gain or loss on the sale? (Enter a loss as a negative number using a minus sign.)On January 2, 20Y4, Whitworth Company acquired 37% of the outstanding stock of Aloof Company for $320,000. For the year ended December 31, 20Y4, Aloof Company earned income of $83,000 and paid dividends of $26,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $338,090. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Income - Select - - Select - - Select - - Select - Dec. 31, 20Y4 - Dividends - Select - - Select - - Select - - Select - Jan. 31, 20Y5 - Sale - Select - - Select - - Select - - Select - - Select - - Select -
- How would I go about finding the income and dividends. I am not sure weather I'm supposed to subtract $24,000 from $78,000?Zach Company owns 45% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $11,100 net loss. Zach Company's entry would include a Oa. credit to cash for $4,995 Ob. credit to the investment account for $4,995 Oc. credit to a loss account for $4,995 Od. debit to the investment account for $4,995 K Previous Next 3:23 PM 53°F Sunny ^ 12/14/2021 a. 近On January 2, 20Y4, Whitworth Company acquired 40% of the outstanding stock of Aloof Company for $340,000. For the year ended December 31, 20Y4, Aloof Company earned income of $180,000 and paid dividends of $10,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $405,000. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale
- Please help meBula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1. 20Y1, Oct. 1 Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds Cash Cash Question Content Area b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. 20Y1, Dec. 31 Interest Receivable Interest Receivable Interest Revenue Interest Revenue Question Content Area c. The receipt of semiannual interest on April 1, 20Y2.…Equity Method. At midyear, Courtland Containers, Inc. purchased a 35 percent ownership interest in Water-town Consolidated, Inc. for $52 million. At year end, Watertown reported an operating loss of $2million, of which only $1million related to the second half of they ear. Despite the operating loss, Watertown paid its regular quarterly dividend of $1.25 million in both the third and fourth quarters. Required 1. What is Courtland’s share of Watertown’s earnings after its investment? 2. Calculate the book value that Courtland should record on its balance sheet for its investment in Watertown at year-end.