Please answer part D a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000.DATE DebitCreditX/X b. For the year ended December 31, Harris Company earned income of $50,000.DATE DebitCreditX/X c. For the year ended December 31, Harris Company paid dividends of $8,000. DATE DebitCreditX/X d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000.DATE DebitCreditX/X

A journal entry is an accounting entry that is used to document a business transaction in the…

Answered: d. On January 8th of the next year,…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter15: S Corporations

Section: Chapter Questions

Problem 4BCRQ

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Please answer part D

a. On January 1, Yourkie Company acquired 30% of the outstanding stock of Harris Company for $300,000.

DATE	Debit	Credit
X/X

b. For the year ended December 31, Harris Company earned income of $50,000.

DATE	Debit	Credit
X/X

c. For the year ended December 31, Harris Company paid dividends of $8,000.

DATE	Debit	Credit
X/X

d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000.

DATE	Debit	Credit
X/X

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Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.

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d. On January 8th of the next year, Yorkshire Company sold the Harris Company stock for $301,000. DATE Debit Credit X/X