Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company. Influencing investments can be classified into two major types as follows: Controlling interest : In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases. Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments. Requierement-1: To determine: The journal entries to record the investment using the equity method

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Answer 1

Question

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

To determine

Requierement-3:

To determine: The journal entry to record the share in income

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Answer 2

Question

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

To determine

Requierement-3:

To determine: The journal entry to record the share in income

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

To determine

Requierement-3:

To determine: The journal entry to record the share in income

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

Question

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

To determine

Requierement-3:

To determine: The journal entry to record the share in income

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

To determine

Requierement-3:

To determine: The journal entry to record the share in income

Answer 6

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

Answer 7

Chapter 15, Problem 7BTN

To determine

Introduction:

Investment in securities: An investment in the security of another company can and influencing investment or non influencing on the basis of type of investment made. An influencing investment in securities provides the controlling or influencing power to the investor in the company.

Influencing investments can be classified into two major types as follows:

Controlling interest: In this case the investor holds more than 50% equity of the company and it has control over the management of the company. The accounts of the company are required to be consolidated in such cases.

Significant influence: In this case the investor holds more than 20% but less than 50% equity of the company and it has significant influence over the management of the company. The investor follows the equity method to account such type of investments.

Requierement-1:

To determine: The journal entries to record the investment using the equity method

Answer 8

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

Answer 9

To determine

Requierement-2:

To determine: The journal entry to record the receipts of dividend

Answer 10

To determine

Requierement-3:

To determine: The journal entry to record the share in income

Answer 11

To determine

Requierement-3:

To determine: The journal entry to record the share in income

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 15 - Prob. 1DQ Ch. 15 - Prob. 2DQ Ch. 15 - Prob. 3DQ Ch. 15 - Prob. 4DQ Ch. 15 - Prob. 5DQ Ch. 15 - Prob. 6DQ Ch. 15 - Prob. 7DQ Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ Ch. 15 - Prob. 10DQ

Requierement-2: To determine: The journal entry to record the receipts of dividend

Requierement-3: To determine: The journal entry to record the share in income

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Chapter 15 Solutions

Requierement-2:

To determine: The journal entry to record the receipts of dividend

Requierement-3:

To determine: The journal entry to record the share in income