Peter Inc. purchases 30% of Sam Ltd for $50,000 with significant influence. At year-end, Peter Inc. reports a net income of $100,000 and a dividend of $50,000 to its shareholders. Calculate the ending balance in Peter's investment account at year-end.

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 July 1, 2021, Bird Inc., a private enterprise, acquired 1,250 shares of Duck Ltd. for $75,000.…

A: Shares refer to the unit of ownership in an organization. Shares are issued to raise funds against…

Q: At the beginning of the year, the Sean Brewery purchased a 25 percent ownership interest in Mark…

A: Income statement forms a part of financial statements and is prepared to ascertain the earnings of…

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: Choose the correct. Evan Company reports net income of $140,000 each year and declares an annual…

A: Answer:   Option d.

Q: At the beginning of the year, the Sean Brewery purchased a 25 percent ownership interest in Mark…

A: Investment: It is a monetary asset purchased with the idea that the asset will provide income in the…

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 January 4, 2021, Runyan Bakery paid $340 million for 10 million shares of Lavery Labeling Company…

A: Investment accounts consist of the shares in which the company has invested its money and holds some…

Q: During 20X1, Blue Corporation sold products for $3,000,000 with the sales returns and allowances of…

A: Comprehensive income statement is the part of financial statement prepared to know the overall…

Q: On January 1, year 5, Olinto Corp., an accrual basis, calendar year C corporation, had $35,000 in…

A: Retained earnings refer to the residual profit left with the firm after paying dividend and are kept…

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: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of investment: Initially, the value of an investment property is determined by…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

Q: MANGO Company acquired 4,000 shares of KIWI Corporation ordinary shares on April 2, 2020 at a cost…

A: The trading investment is recognized at FVTPL and any changes in their fair value are recognized in…

Q: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: a)

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

A: Part 1:

Q: Wendy Day Kite Company owns 40% of the outstanding stock of Strong String Company. During the…

A: Financial statements are condensed summaries of transactions communicated in the form of reports for…

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: BuyCo, Inc., holds 28 percent of the outstanding shares of Marqueen Company and appropriately…

A: The equity method is the one that is applied when a company has 20% to 50% of stock ownership…

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2016. Kim paid $10 million for…

A:

Q: On July 1, 2021, Bird Inc, a private enterprise, acquired 1,250 shares of Duckltd. tot 375, 000.…

A: Introduction: Financial transactions are tracked using journal entries. You enter transaction…

Q: Evan Company reports net income of $140,000 each year and declares an annual cash dividend of…

A: Identify the appropriate answer for the given statement from the given choices. Option d. The…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: In case of an entity having significant influence i.e. less than 50% stake in other entity. The…

Q: Wharton, Inc., pays income taxes on capital gains (Including gains on marketable securities) at a…

A: Realized Gain = Cash - Cost Tax amount = Realized Gain * Tax rate

Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2021. Kim paid $10 million for…

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

Q: At the beginning of the year, the Sean Brewery purchased a 25 percent ownership interest in Mark…

A: Book value refers to the value of an asset based on the balance sheet account balance of an…

Q: ayser SE owns 25% of Plano Company. For the current year, Plano reports net income of $190,000 and…

A: Solution:                                                                    Record of entries in…

Q: Cayuga Meadows purchased 42,000 shares of common stock of Long Corporation as a long-term investment…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: On January 2, 2020, Black Company purchased 17% of Rock Company's common stock for $51,000. Rock's…

A: Investment means engaging the funds to generate income for the coming years. Investment can be made…

Q: On February 2, 2020, Groove Company purchased 15% of Pop Company's common stock for $54,000. Pop's…

A:

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company’s ordinary shares for P20,000,000.…

A: Income from investment reported in income statement for the year ended December 31, 2020 = Total…

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: ayable       $ 56,700 Accounts receivable $ 43,800       Additional paid-in capital         50,000…

A: Journal entry A journal entry is a record of the business transactions within the accounting books…

Q: On December 15, 2021, Blue Company paid $100,000 for 8,0000 shares of Marble Company common stock.…

A: For the purpose of calculating investment by one company in another company the fair value of the…

Q: Philip Company purchased 250,000 ordinary shares of Smiley Company for P40 per share on April 2,…

A: Given, Total Dividend paid=P600,000Total ordinary shares outstanding=1,000,000 ordinary shares

Q: how much should MANGO report as gain or loss on sale of investment?

A: The management sometimes invests in the stock market to acquire other corporations' shares for the…

Q: On January 1 of the current year, Rhondell Corporation has accumulated E & Pof $32,000. Current E &P…

A: Particular Amount   Accumulated E & P $    32,000.00   Current E & P $    96,000.00…

Q: Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the…

A: Right issue gives right to the existing shareholders for purchase of shares at a discounted price or…

Q: On January 4, Year 1, Ferguson Company purchased 64,000 shares of Silva Company directly from one of…

A: Equity method of accounting refers to the process of recording transactions under which the revenue…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: Cost method of investment valuation is to value the investment on the basis of the cost which has…

Q: Nakeeta company owned 50,000 ordinary shares which were purchased for P120 per share. During the…

A:

Q: Borgin inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to…

A: Balance in the investment account at the end of the year is the summation of the initial investment…

Q: On January 4, 2021, Runyan Bakery paid $360 million for 10 million shares of Lavery Labeling Company…

A: The equity method is a bookkeeping procedure utilized by an organization to record the benefits…

Q: On January 1 of the current year, Rhondell Corporation has accumulated E &Pof $32,000. Current E &P…

A: Working Notes: 1.  Calculation of Total E&P. Particulars Amount Accumulated E&P…

Q: Evan Company reports net income of $183,000 each year and declares an annual cash dividend of…

A: When a company's ownership stake in another company is worth 20–50 percent of the investee's stock,…