Harrison Company owns 20,000 of the 50,000 outstanding shares of Tammy, Inc. nmon sto Harrison uses the equity method to account for the equity investment. Harrison's beginning balance in the equity investment account was $750,000 for year20. During 2020, Tammy earns $1,200,000 and pays cash dividends of $960,000. Harrison's journal entry to record the cash dividends from Tam hould inclu O CR Dividends Revenue $960,000 O DR Cash $960,000 CR Equity Investment $384,000 O CR Dividends Revenue $384,000 O CR Investment Income $384,000

Q: On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of…

A: Solution: Cost of investment for Gamu = 10000*P70 = P700,000 Sale value of investment for Gamu =…

Q: On February 15, 2021, Harriett sold 500 shares of QRS Corporation short on the NYSE. Four days…

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Q: The entry to record the declaration of the dividend would include a debit to Retained Earnings of

A: Given that: Purchase price of 20,000 shares = P300,000 Market price of shares = P500,000

Q: On January 1, 2020, Pennington Corporation purchased 30% of the common shares of Edwards Company for…

A: Account Titles and Explanation Debit Credit Investments - Edwards Company $180,000…

Q: Pharoah Company owns 3200 of the 10000 outstanding shares of Sheridan Corporation common stock.…

A: % of shares = No. of shares hold / Total outstanding shares of Sheridan Corporation = 3200/10000 =…

Q: Aranda Corporation made the following cash purchases of securities during 2020, which is the first…

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: On October 1, 2021, SIKAP Corporation owns 10,000 FVOCI shares acquired at a cost of P120,000. The…

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Q: Superior Company owns 40% of the outstanding stock of Bernard Company. During 2018, Bernard paid…

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: On January 1, 2020, Stellar Co. purchased 23,000 shares (a 10% interest) in Elton John Corp. for…

A: Inter group company accounting deals with accounting of related entities such as subsidiaries, etc.

Q: On October 1, 2020, Miya owns 15,000 fair value through other comprehensive income shares acquired…

A: The amount to be recorded as dividend income in 2020 is option (d) i.e. 66000

Q: During the year ended December 31, 2019, and in the following montha of January and February 2020,…

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Q: Superior Company owns 40% of the outstanding stock of Bernard Company. During 2021, Bernard paid a…

A: Equity method: Equity method is the accounting method used for accounting equity investments which…

Q: Turner Company owns 40% of the outstanding stock of ICA Company. During the current year, ICA paid a…

A:

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Part 1:

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

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Q: Harrison Co. purchases 5,000 of the 50,000 outstanding ordinary shares of Taylor, Inc for £500,000…

A: Formula: Investment balance at year end = Beginning investment balance + net income - Dividends paid

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2018. Kim paid $10 million for…

A: Equity method is a method of recording The investment is recorded at the acquisition cost under…

Q: Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At…

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A: The questions are multiple choice questions. Required  Choose the Correct Option.

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A: given   In January 2021, Tawatinaw Group paid $650,000 for 60,000 shares of Neerlandia Inc., giving…

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A:

Q: During the year 2021, David Company purchased 1,000 shares of Goliath Company ordinary shares at…

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A: Equity Method: It is a method applied when one company has 20% to 50% ownership in another company.…

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A:

Q: On January 1, 2021, Pepita Corporation purchased 25% of the outstanding voting shares of Pablito…

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A: The holding of share are considered as the investment and the  balance of investment can be…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: Hanzs' share in net income of Eve = Eves' Net income ×Hanzs' controlling share=P 1,400,000 × 30%=P…

Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

A: Solution: Share in Saleh's dividend in 2017 = Total dividend paid * % holding of AI = OMR 40,000 *…

Q: 1. On July 1, 2021, Rich sold half of its stock in Doane for 396,000 cash. Before income taxes, what…

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Q: On 1 January 2017, Al Yousef Group acquired 30% of the outstanding voting shares of Saleh…

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Q: On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short…

A: As per equity method of valuation, The total equity available is Fair value + Income - dividend…

Q: An investor company purchased 60,000 of the 500,000 outstanding shares of the investee company's…

A: Given the following information: An investor company purchased 60,000 of the 500,000 outstanding…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: Equity represents the capital of the company that is reported on the balance sheet of the company.

Q: Turner Company owns 10% of the outstanding stock of ICA Company. During the current year, ICA paid a…

A: Equity Investment:   The financial instruments which claim ownership in the issuing company and pay…

Q: HET purchased 80% of the 10,000 outstanding shares LNET had on Jan. 1, 2019 for $300,000 cash. On…

A: In this question, We will find total acquisition differential on January .1, 2019.

Q: In the December 31, 2020, statement of financial position, what is the carrying amount of the…

A: correct option with all workings are as follows

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: DeMilo, Inc., owns 100 percent of the 40,000 outstanding shares of Ricardo, Inc. DeMilo currently…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: Solomon Company owned 20,000 shares of Moses Company purchased in 2015 for P2,400,000. On December…

A: Property Dividends given = 20,000 / 10 = 2000 shares

Q: In 2020, Angela Company held the following investments in ordinary shares: •     25,000 shares of…

A: When company receives dividends from its investment, dividend income gets credit to dividend income…

Q: Big owns 70% of Little and uses the equity method to account for its investment in Little. In 2020,…

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.