Required: Based on the above, prepare the journal entries assuming the investment is Financial asset is measured through profit or loss Financial asset is measured through other comprehensive income

Q: P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital…

A: Equity method is an accounting technique of recording the financial transactions related to…

Q: Hardstone Inc. had excess cash and invested it in the stock of Softrock, Inc. On August 5, 2021…

A: The excess cash available with the firm can be invested in financial assets for a short-term period…

Q: On January 1, 2018, West Coast Boats paid $ 1,850,000 for its 30% investment in East Coast Autos.…

A: Given that: Investments price = $18,50,000 Net Income = $30,000,000 Dividends paid = $15,000,000

Q: An investor company purchased 42,000 of the 100,000 outstanding shares of the investee company's…

A: Equity method is a method of accounting for investments. This method is used when investor has…

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: McDaniel Corporation manufactures surveying equipment. Journalize the entries to record the…

A: Journal entry: The first step in accounting is a journal entry, which is used to record a business…

Q: In January 2022, the management of Pharoah Company concludes that it has sufficient cash to permit…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: On September 3, 2021, Liberty Bank purchased 14,000 shares of eBay stock for $77 per share and…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: On January 4, 2021, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company…

A: 1) Journal entries:

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

A: The FV- fair Value of Securities is considered as the current value at which the security is trading…

Q: pr. 1   Purchased 7% MRT bonds at face value, for $56,000. Paver received interest from these bonds…

A: PAVER FINANCIAL CORPORATION Statement of Income (Partial) For the year ended Dec 31, 2021…

Q: On January 1, 2018, ABC Company purchased 40,000 shares of RST at P100 per share. The investment in…

A: Measurements of Investment-: In addition to common deviation, a bond's or bond fund's risk is…

Q: On January 1, 2019, in its first year of operation, Olson Company acquired some of the outstanding…

A: As the Oslon company acquired 25% Bryant company, which means Oslon can exercise  significant…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: An investor company purchased 180,000 shares of common stock of the investee company on January 2,…

A: If an investor in a firm has considerable control over the company's operations and practices, the…

Q: Integrity Company is a publicly held company whose shares are traded in the over-the-counter market.…

A:

Q: Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions…

A: When shares of a company are purchased as investments, then these investments should be recorded on…

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: On December 31, 2014, how much should MARIE CORP. carry its investment in CURIE INC.?

A: In case of equity method, the purchase value of investment would be adjusted for share in equity for…

Q: On January 1, 2013, K Company purchased a 30 % interest in P Company for $250,000. P reported net…

A: The investor gets the share in investees profits as per the proportionate share.

Q: Prepare journal entries. 1 Record the issue of common shares to promoters.   2 Record the issue of…

A: Journal Entries of Trio Networks Corporation’s for 2020

Q: Red Inc., a public company entered into the following transactions during the year ended December…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: MD Corp. completed the following transactions relating to investment in AO Company ordinary shares,…

A: Where shares are held as investments for short-term (current assets), the shares are recorded at…

Q: Inc. identified the following selected transactions occurring during the year ended December​ 31,…

A: Noncash investing and financing activities are those transactions that do not attract cash. So they…

Q: On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At…

A: When one company is holding shares in another company from 20% to 50% , then it is called as…

Q: On January 1, 2020, Alice Company purchased 40,000 shares of Jasper at P100 per share. The…

A: Initial measurement of the investment = Purchase cost of Investment + Brokerage fees

Q: On July 1, 2018, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: Investment is the amount which is put into some assets or securities to gain some returns in future.…

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

A: Formula: Income from the investment = Total dividends paid x Percentage of holding shares

Q: On March 31, 2018, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50…

A: Workings: Purchased 10 % of KT manufacturing's capital stock for $ 50 millions.

Q: On January 4, 2016, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company…

A: 1.Prepare all appropriate journal entries related to the investment during 2016, assuming Runyan…

Q: An investor company purchased 121,000 of the 250,000 outstanding shares of the investee company's…

A: Owners’ equity: It is a owner's value and amount invested by an individual in the firm. It is…

Q: On January 1, 2021, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd.…

A: In case of equity method of accounting for Investment then Investment income will be assessee share…

Q: On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: equity method to account for this investment

A: Since Jupiter Inc. acquired 25% in Saturn Co., the debit balance in the investment will include the…

Q: On January 2, 2018, Sanborn Tobacco Inc. bought 5% of Jackson Industry’s capital stock for $90…

A:

Q: On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary…

A:

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

A: Accounting Rules (1) Debit what comes in, Credit what goes out.(2) Debit all expenses and losses,…

Q: Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired…

A: SOLUTION- INCOME STATEMENT- IT CAN BE DEFINED AS THE FINANCIAL STATEMENT THAT IS USED FOR THE…

Q: On January 1, 2011, Goodwill Corporation purchased 25% of the outstanding voting shares of Short…

A: We first need to understand the meaning of equity method for recording investment. This method is…

Q: sh of $13 per share. Mar. 9 6,000 preferred shares were issued for cash

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

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: Bloom Company was incorporated on January 1, 2018, with P500,000 from the issuance if share capital…

A: Balance sheet means where all assets , liabilities and equity are shown in proper format In balance…

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

A: Yousef Group acquired 30% of the outstanding voting shares of Saleh Enterprises & investment…

Q: On July 1, 2017, Entity H acquired 25% of the shares of Oki, Inc. for P1,000,000. At the date, the…

A: Entity H acquired 25% share, therefore its share in profit  = 25% x 160000 = 40000

Q: Assume that, on January 1, 2021, Everest Corporation paid $1,656,000 for its investment in 82,800…

A: Investment value at end = Value of investment + Percentage of investment ( Net income - Dividend…

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: On 1st of January 2016, Ms. Huma purchased 2,400 shares of Bank Nizwa for OMR 0.700. The company…

A: This question deals with the total dividend paid  and value of share. Dividend is a distribution of…

Q: During the fourthquarter of 2018, Rainbarrel, Inc. generated excess cash, which the company invested…

A: Investment held for sale is presented at fair values in the balance sheet. Until the investment is…

Q: On 30 June 2017, P Co pays £50,000 cash to acquire 70% of the ordinary shares of S Co. The draft…

A: Answer 1:

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.