Equity Method On January 2, Yorkshire Company acquired 32% of the outstanding stock of Fain Company for $380,000. For the year ended December 31, Fain Company earned income of $99,000 and paid dividends of $30,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase               Dec. 31 - Income               Dec. 31 - Dividends

Question

Equity Method

On January 2, Yorkshire Company acquired 32% of the outstanding stock of Fain Company for $380,000. For the year ended December 31, Fain Company earned income of $99,000 and paid dividends of $30,000.

Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.

Jan. 2 - Purchase      
       
Dec. 31 - Income      
       
Dec. 31 - Dividends      
       

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: For each of the following situations, indicate whether you agree or disagree with the financial repo...

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting a...

Q: A partnership has the following capital balances: Allen, Capital . . . . . . . . . . . . . $60,000Bu...

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed ...

Q: You are currently working in a mid-tier accounting firm. In an engagement meeting with a client, the...

A: Before accepting any audit agreement, an auditor should raise certain concerns. These concerns shoul...

Q: Q) If the company is successful in achieving challenging targets for the performance measures of on-...

A: On-time delivery – 3 types of performance measures would be Percentage of orders that were delivere...

Q: Randi qualifies for a home deduction. The amount of space devoted to business use is 400 square feet...

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a civilize...

Q: On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer f...

A: a.  

Q: Pace Labs. Inc. provides mad cow disease testing for both state and federal governmental, agricultur...

A: Total overhead variance refers to the difference between the total overhead applied and actual overh...

Q: Answer of the following question related to these characteristics and constraints. When there is agr...

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting a...

Q: What are the five steps used to determine the proper time to recognize revenue?

A: Revenue is the amount of money which is received by selling goods & services to the customers. I...

Q: Gem Limited commences operations on 1 January 2019. During 2019 Gem Limited explores threeareas and ...

A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in monetar...

Q: Q) Spark ltd has two divisions, assembly and electrical. The assembly division transfers partially c...

A: (a) Transfer Price using general rule: As there is a spare capacity, the transfer price will be the ...

Q: C d both

A: Answer:  b) Specific purpose financial statements are being prepared for limited number of users for...

Q: Stewart Jones is reviewing the results of the subsequent events audit procedures. Stewart is writing...

A: Subsequent events are the events occurring after the balance sheet date but before the financial sta...

Q: Agatha's Inc. is about to introduce a new product in the market but is not sure as to how it shouldp...

A: There are two types of pricing objectives that is useful to increase the profit of the company they ...

Q: The Presidio Company has redesigned one of its products and is deciding on the pricing for the redes...

A: Desired profit = (Investment required  x Target return on investment)

Q: 3. Can the teacher satisfy the needs of all types of learners in a large class? Why & why not?

A: Answer:   A teacher cannot satisfy the needs of all types of learners in a large class.

Q: Income Statement FedEx Corporation (FDX) had the following revenue and expense account balances (in ...

A: The income statement for FDX Corporation is as follows: The operating income is calculated as the di...

Q: Cutting Edge is a monthly magazine that has been circulating in the market for eighteen months.Curre...

A: a. For the distributed issue every month there will be a reduction in the sales revenue (unearned) a...

Q: Briefly describe the inputs that companies should use when determining fair value. Organize your ans...

A: Generally Accepted Accounting Principle (GAAP): Generally Accepted Accounting Principle (GAAP) is a ...

Q: a) Using the above data, compute the gross profit to be recognised for each of the three years, assu...

A: Click to see the answer

Q: Collinsworth LTD., a U.K. company, prepares its financial statements according to International Fina...

A: 1.  

Q: The Mazzanti Wholesale Food Company’s fiscal year-end is June 30. The company issues quarterly finan...

A: Prepaid insurance means insurance paid in advance for the upcoming period. It is shown in the balanc...

Q: Accounting Question

A: Click to see the answer

Q: Because of political instability in North Africa, let’s not disclose specific countries. In addition...

A:  

Q: Explain the three types of Regulations: Proposed, Temporary and Final. At least half page

A: Treasury regulations are created to interpret the IRC (internal revenue code). These regulations are...

Q: Richard Palm is the accounting clerk of Olive Limited. He uses the source documents such as purchase...

A: Financial Reporting System:   The financial reporting system (FRS) overview the financial resources...

Q: Here is a question from my study material. Question included in the image attached. __________ A. W...

A: Variable Overhead spending variance is computed by subtracting the actual hours multiplied by standa...

Q: The Alford Group had 202,000 shares of common stock outstanding at January 1, 2021. The following ac...

A: Click to see the answer

Q: At Winstead Elementary School 6.9% of the 58 boys in the school have blue eyes and 10.1% of the 69 g...

A: Total percent of the school as a whole has blue eyed students = (Total no. of boys and girls who hav...

Q: EX 4-17: Stylist Services Co. offers its services to individuals desiring to improve their personal ...

A: Since multiple questions are posted as per guidelines only the question (EX 4-17) will be answered.

Q: For each of the following situations, indicate whether you agree or disagree with the financial repo...

A: Financial accounting: Financial accounting is the process of recording, summarizing, and reporting a...

Q: Gem Limited commences operations on 1 January 2019. During 2019 Gem Limited explores three areas and...

A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in monetar...

Q: Please help filling this

A: Solution: Marigold Worksheet   Adjustments Adjusted Trial Balance Income Statement Balance ...

Q: what measures should company take to overcome overapplied foh in future

A: The overapplied Factory Overhead are to be fixed by making the following entry:   Factory Overhead D...

Q: “I don’t understand,” complained Chris, who responded to your bulletin board posting for tutoring in...

A: 1.

Q: Required: a) Calculate the total accumulated long-service leave benefit as at 30 June 2020. b) What ...

A: Click to see the answer

Q: If a hospital received $9,000 in payments per year at the end of each year for the next (12) years f...

A: Current value of collection payments(Present value) = Annual payment x PVIAF (rate %, year)

Q: aluing Trading Securities at Fair Value On January 1, Valuation Allowance for Trading Investments ha...

A: Pass necessary adjusting entry for valuation of trading securities transaction.

Q: Prepare the necessary adjusting entries at December 31, 2018, for the Falwell Company for each of th...

A: Click to see the answer

Q: Stant Company is a small editorial services company owned and operated by Tracy Stant. On July 31, 2...

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, t...

Q: Accounting Question

A: Comparative balance sheet: A comparative balance sheet represents the financial differences between...

Q: Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace ear...

A: Purchase option   Purchase option is provision of certain lease contracts which provides the lessee...