On January 1 Criquet Co. acquired an interest in the Tamlee Co. for $500,000.  At December 31, Tamlee Co. declared and paid a cash dividend of $50,000 and reported a net income of $160,000.   REQUIRED:  Prepare the journal entries for the Criquet Co. under each of the independent circumstances: 1. Criquet Co. acquires a 10% interest in the Tamlee Co. 2. Criquet Co. acquires a 25% interest in the Tamlee Co.

Q: On January 2, year 1, ABC Company purchased 75% of XYZ's outstanding common stock. On that date, the…

A: a) In its December 31, year 1 consolidated statement of retained earnings, what amount should ABC…

Q: On January 2, year 1, ABC Company purchased 75% of XYZ's outstanding common stock. On that date, the…

A: The question is related to the Consolidation. The details are as under  ABC Company Share in XYZ  =…

Q: On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash. Prior to…

A: GIVEN   On January 1, year 1, DEF Company purchased 80% of the stock of UVW for P4,000,000 cash.…

Q: On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term…

A: The companies invest in long-term investments to make additional income on the surplus funds at…

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: Duday Corporation incurred the following transactions relating to investment in Efren Corporation…

A: Unrealized gain = Fair value of shares - Sale price of shares=P 192- P190=P2 per share   Amount of…

Q: Balance sheet accounts Investment in subsidiary Retained earnings Total stockholders' equity…

A: Retained earnings is the accumulated profit and losses balance. It belongs to the owners of the…

Q: On January 1, 20x1, ABC Corporation purchased all of XYZ Corporation's common stock for $1,200,000.…

A: Retained Earnings- Retained earnings are the collective net income or profits of a corporation after…

Q: Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of…

A: given that, Shaun company reports net income = P280000 Shaun company pays annual cash dividend =…

Q: How much was the gain or loss on sale of investment on January 1, 2020? a. P1,575 loss b. P1,575…

A: Company can control another company by having the control which is significant to control and…

Q: On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000.…

A: Given information is: Todd Company acquired 40% of the outstanding stock of McGuire Company for…

Q: Peter Inc. purchases 30% of Sam Ltd for $50,000 with significant influence. At year-end, Peter Inc.…

A: Solution: Holding of peter Inc. in Sam ltd = 30% As Peter Inc holds more than 20% in Sam ltd,…

Q: On January 1, 20x1, Puno Inc. acquired 80% interest in Dong Company. During 20x2, Puno and Dong…

A: Business combination refers to the agreement or contract between two companies, acquirer and…

Q: On September 1, Wray Company received a P500,000 cash dividend from Seco Company in which Wray…

A: calculation of income from dividend for current year are as follows

Q: On January 1, 20X4, ABC Company acquired 100,000 ordinary shares of XYZ Company for P5,000,000. At…

A:

Q: Pepito Company purchased 40% of the outstanding stock of Reyes Company on January 1.  Reyes reported…

A: Increase in Investment = Reported net income x Ownership percentage in Reyes Company Increase in…

Q: Ella Ltd purchased 20% of the shares of Monica Ltd on 1 January 20x2 for cash of $500,000. This…

A: Solution: Monica ltd is strongly influenced by Ella ltd. As a result, Monica Limited has associate…

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A: Consolidated financial statements are the financial statements of a group consisting of multiple…

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A: Journal:-These are prepared by the companies with debit and credit sides in order to match the…

Q: In its December 31, year 1 consolidated statement of retained earnings, what amount should ABC…

A:

Q: On October 26, 20x1, Entity A acquired 100% interest in Entity B for 2,800,000. On this date, Entity…

A:

Q: In 20A, Angelu company bought 10,000 shares of Eloisa company at a cost of P360,000. On December 1,…

A: The company may provide dividends in cash or dividend in kind like stock dividends property…

Q: On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term…

A: An acquisition is when a company purchases most of another company's shares.

Q: n January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company…

A: Inventory includes both raw materials used in production and finished goods that are ready for sale.…

Q: On January 1, 20x1, ABC Corporation purchased all of XYZ Corporation's common stock for $1,200,000.…

A: Solution Retained earning are the amount of profit a company has left over after paying all its…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: Acquisition is a process where a company purchases most or all the shares of another company to have…

Q: On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for…

A: Journal Entry: Business transactions are recorded in an accounting system for an organization…

Q: Ella Ltd purchased 20% of the shares of Monica Ltd on 1 January 20X2. This purchase resulted in Ella…

A: Solution:                                          JOURNAL ENTRIES a) Using Equity Method Date…

Q: On January 1, Year 4, Grant Corporation bought 10,000 (80%) of the outstanding common shares of Lee…

A: Consolidated Financial Statements: It is  a financial statement of a parent company and  its…

Q: On January 1, 2018, Enron Company purchased for cash 40 percent of Walt Company’s 450,000 shares of…

A:

Q: On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500…

A: The investment income to be reported is equal to the total amount received from the company as a…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: Purchase consideration: Fair value of the equity investment + Purchase price paid for acquiring…

Q: On July 1, 20x6 TRUST Company purchased 80% of the outstanding shares of DUREX Company at a cost of…

A: Trust purchased 80% of Doodle company     At cost   $   1,600,000.00   Net assets of Doodle…

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A: Property dividend: Distribution of non-cash assets in the form of dividend is referred to as…

Q: Shaun Company reports a net income of P280,000 each year and pays an annual cash dividend of…

A: The difference between Purchase Price and Book Value is either Goodwill or Capital Reserve. When…

Q: On January 1, Ivanhoe Corporation purchased a 25% equity in Helbert Corporation for $152,000. At…

A: Investment in Helbert, December 31 = Stock Investments cost + Share of net income - Dividends…

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A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…

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

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

Q: Player Corporation purchased 100 percent of Scout Company's common stock on January 1, 20X5, and…

A: Under the Equity method, income and loss of the Investee Company is adjusted in the value of…

Q: s fees of P5,100. The shares represented 25% of the outstanding shares of Rigby and Jude has an…

A: Investment Valuation for acquisition of share of a company shall be recorded at the cost of…

Q: eter Company purchased 80 percent of the outstanding shares of Sedrosky Company at a cost of…

A: Given:

Q: On January 1, 20x2, Pfieter Company purchased 80 percent of the outstanding shares of Sedrosky…

A: Consolidated financial statements are the financial statements of a group consisting of multiple…

Q: On January 2, Dundar Mifflin acquired 30% of the outstanding stock of Steve & Company for $105,000.…

A: share of outstanding stock of steve and company from Dundar mifflin  : 30% Income of steve and…

Q: On July 1, 2020 Blush Company purchased 20% of the when the fair value of net assets was…

A: Investment: It is an asset or item which is purchased and held to generate income or for…

Q: On January 1, 20x1, ABC Corporation purchased all of XYZ Corporation's common stock for $1,200,000.…

A: Introduction Consolidated Retained Earnings is the amount of retained earnings that is presented in…

Q: On January 1, 2021, OBDURATE Co. acquired 30% ownership interest in STUBBORN, Inc. for P200,000.…

A: A business combination occurs when an entity acquires control over an organization. Generally, the…

Q: On January 2, Yorkshire Company acquired 38% of the outstanding stock of Fain Company for $380,000.…

A: Journal entries means the book of prime entry including debit and credit item. When share has been…

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.