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Chapter 15 Investments and Fair Value Accounting 713 EX 15-11 Equity method for stock investment 0On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company OBJ. 3 directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the Penman shares. On July 2, 2016, Filington paid $620,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington. a. Provide the Spandella Inc. journal entries for the transactions involving its investment in Filington Inc. during 2016. b.Determine the December 31, 2016, balance of the Investment in Filington Company. Stock account. OBJ.3 Bulldog Co. purchased 34% of the outstanding stock of Gator Co. all shareholders on June 30. EX 15-12 Equity method for stock investment with loss

Chapter 15 Investments and Fair Value Accounting 713 EX 15-11 Equity method for stock investment 0On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company OBJ. 3 directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the Penman shares. On July 2, 2016, Filington paid $620,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington. a. Provide the Spandella Inc. journal entries for the transactions involving its investment in Filington Inc. during 2016. b.Determine the December 31, 2016, balance of the Investment in Filington Company. Stock account. OBJ.3 Bulldog Co. purchased 34% of the outstanding stock of Gator Co. all shareholders on June 30. EX 15-12 Equity method for stock investment with loss

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 15.11EX
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Chapter 15 Investments and Fair Value Accounting 713 EX 15-11 Equity method for stock investment 0On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company OBJ. 3 directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the Penman shares. On July 2, 2016, Filington paid $620,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington. a. Provide the Spandella Inc. journal entries for the transactions involving its investment in Filington Inc. during 2016. b.Determine the December 31, 2016, balance of the Investment in Filington Company. Stock account. OBJ.3 Bulldog Co. purchased 34% of the outstanding stock of Gator Co. all shareholders on June 30. EX 15-12 Equity method for stock investment with loss
Transcribed Image Text:Chapter 15 Investments and Fair Value Accounting 713 EX 15-11 Equity method for stock investment 0On January 4, 2016, Spandella Company purchased 175,000 shares of Filington Company OBJ. 3 directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the Penman shares. On July 2, 2016, Filington paid $620,000 in total dividends to its shareholders. On December 31, 2016, Filington reported a net income of $1,050,000 for the year. Spandella uses the equity method in accounting for its investment in Filington. a. Provide the Spandella Inc. journal entries for the transactions involving its investment in Filington Inc. during 2016. b.Determine the December 31, 2016, balance of the Investment in Filington Company. Stock account. OBJ.3 Bulldog Co. purchased 34% of the outstanding stock of Gator Co. all shareholders on June 30. EX 15-12 Equity method for stock investment with loss
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