9. Berry's Concrete acquired 25% of the outstandingcommon stock of Blakeley, Inc. on January 1, 2010,by paying $2,000,000 for 80,000 shares. Blakeleydeclared and paid a $0.50 per share cash dividendon June 30 and again on December 31, 2010.Blakeley reported net income of $1200,000 for theyear. At December 31, 2010, the market price ofBlakeley's common stock was $28 per share.InstructionsPrepare the journal entries for Berry's Concrete for2010 assuming Berry's cannot exercise significantinfluence over Blakeley. (Use the cost method andassume Blakeley common stock should be classified asavailable-for-sale.)

Journal entry is a primary entry that records the financial transactions initially.

Answered: . Berry's Concrete acquired 25% of the…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 24E

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Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). Open the file EPS from the website for this book at cengagebrain.com. Enter all input items (AF) in the appropriate cells in the Data Section. Enter all formulas in the appropriate cells in the Answer Section. Enter your name in cell A1. Save the completed file as EPS2. Print the worksheet when done. Also print your formulas. Check figure: Basic earnings per share from continuing operations (cell D29), 5.94.
Ponce Towers, Inc., had 50,000 shares of common stock and 10,000 shares of 100 par value, 8% preferred stock outstanding on January 1, 2011. Each share of preferred stock is convertible into four shares of common stock. The stock has not been converted. During the year, Ponce Towers issued additional shares of common stock as follows: For 2011, Ponce Towers, Inc., had income from continuing operations of 545,000 and a 72,000 loss from discontinued operations (net of tax). As vice president of finance for the firm, you have been asked to calculate earnings per share for 2011. The worksheet EPS has been provided to assist you.
Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.

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. Berry's Concrete acquired 25% of the outstanding common stock of Blakeley, Inc. on January 1, 2010, by paying $2,000,000 for 80,000 shares. Blakeley declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2010. Blakeley reported net income of $1200,000 for the