Wang be required to make to reflect the increase in ownership.
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Wang owns 30% of Chen and at December 31, 2015 the balance in Wang's investment account equals $400,000. On January 1, 2016 Wang purchases an additional 40% ownership in Chen for $600,000 bringing Wang's ownership up to 70%. Wang will Dr. Investment in Chen for $600,000 and credit cash for $600,000. What additional entry will Wang be required to make to reflect the increase in ownership.
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- Wang owns 30% of chen and at December 31, 2015 the balance in Wang's investment account equals $400,000. On January 1, 20216 Wang purchases an additional 40% ownership in Chen for $600,000, bringing Wang's ownership up to 70%. Wang will Dr. Investment in Chen for $600,000 and Credit Cash for $600,000. What additional entry will Wang be required to make to reflect the increase in ownership? thank youMatthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2015, the balance in the Investment in Lindman account is $398,000. Amortization associated with this acquisition is $17,700 per year. In 2015, Lindman earns an income of $206,000 and declares cash dividends of $51,500. Previously, in 2014, Lindman had sold inventory costing $32,900 to Matthew for $47,000. Matthew consumed all but 20 percent of this merchandise during 2014 and used the rest during 2015. Lindman sold additional inventory costing $46,200 to Matthew for $70,000 in 2015. Matthew did not consume 40 percent of these 2015 purchases from Lindman until 2016. a. What amount of equity method income would Matthew recognize in 2015 from its ownership interest in Lindman? b. What is the equity method balance in the Investment in Lindman account at the end of 2015?Matthew Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee's operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $335,000. Amortization associated with this acquisition is $9,000 per year. In 2018, Lindman earns an income of $90,000 and declares cash dividends of $30,000. Previously, in 2017, Lindman had sold inventory costing $24,000 to Matthew for $40,000. Matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $28,000 to Matthew for $50,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019. What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman? What is the equity method balance in the Investment in Lindman account at the end of 2018? I need help with the second part (#2) since…
- On January 1, 2020, Beyonce Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,400,000. At the time, the book value and the fair value of John's net assets were $13,000,000. On July 1, 2021, Beyonce paid $3,040,000 for 50,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Beyonce owns 30% of John and can exercise significant influence over John's operating and financial policies. John reported the following net income and declared and paid the following dividends. Net Income Dividend per Share Year ended 12/31/20 $700,000 None Six months ended 6/30/21 500,000 None Six months ended 12/31/21 815,000 $1.55 Instructions Determine the ending balance that Beyonce Co. should report as its investment in John Corp. at the end of 2021.Roberts owns 60% of Smith at has a balance in the investment account of $200,000 at December 31, 2015. On January 1, 2016, Roberts purchases an additional 10% ownership in Smith for $70,000. Roberts will Dr. Investment in Smith for $70,000 and credit Cash for $70,000. What additional entry will Roberts be required to make to reflect the increase in ownership? ReplyForwardKim Company bought 30% of the shares of Phelps, Inc., at the start of 2016. Kim paid $10 million for the shares. Thirty percent of the book value of Phelps’s net assets is $8 million, and the difference of $2 million is due to land that Phelps owns that has appreciated in value. During 2016, Phelps reported net income of $1 million and paid a cash dividend of $0.5 million. At what amount does Kim carry the Phelps investment on its balance sheet as of December 31, 2016?
- Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $335,000. Amortization associated with this acquisition is $9,000 per year. In 2018, Lindman earns an income of $90,000 and declares cash dividends of $30,000. Previously, in 2017, Lindman had sold inventory costing $24,000 to Matthew for $40,000. Matthew consumed all but 25 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $28,000 to Matthew for $50,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019.a. What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman?b. What is the equity method balance in the Investment in Lindman account at the end of 2018?Adams owns 80% of Williams and has a carrying value of the investment at January 1, 2020, of $600,000. On that date, Adams sells 20% of its investment for $150,000 reducing its ownership to 60%. What journal entry is recorded by Williams at that dateKim Company bought 30% of the shares of Phelps, Inc., at the start of 2018. Kim paid $10 million for the shares.Thirty percent of the book value of Phelps’s net assets is $8 million, and the difference of $2 million is due toland that Phelps owns that has appreciated in value. During 2018, Phelps reported net income of $1 million andpaid a cash dividend of $0.5 million. At what amount does Kim carry the Phelps investment on its balance sheetas of December 31, 2018?
- Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2018, the balance in the Investment in Lindman account is $365,000. Amortization associated with this acquisition is $12,600 per year. In 2018, Lindman earns an income of $132,000 and declares cash dividends of $33,000. Previously, in 2017, Lindman had sold inventory costing $33,600 to Matthew for $56,000. Matthew consumed all but 20 percent of this merchandise during 2017 and used the rest during 2018. Lindman sold additional inventory costing $44,800 to Matthew for $80,000 in 2018. Matthew did not consume 40 percent of these 2018 purchases from Lindman until 2019. What amount of equity method income would Matthew recognize in 2018 from its ownership interest in Lindman? What is the equity method balance in the Investment in Lindman account at the end of 2018?Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to significantly influence the investee’s operations and decision making. On January 1, 2021, the balance in the Investment in Lindman account is $341,000. Amortization of excess fair value associated with the 30% ownership is $17,400 per year. In 2021, Lindman earns an income of $159,000 and declares cash dividends of $53,000. Previously, in 2020, Lindman had sold inventory costing $47,200 to Matthew for $59,000. Matthew consumed all but 25 percent of this merchandise during 2020 and used the rest during 2021. Lindman sold additional inventory costing $60,800 to Matthew for $80,000 in 2021. Matthew did not consume 40 percent of these 2021 purchases from Lindman until 2022. What amount of equity method income would Matthew recognize in 2021 from its ownership interest in Lindman? What is the equity method balance in the Investment in Lindman account at the end of 2021?Wang Acquires 100% of Chen on January 1,2010 and will operate Chen as a separate subsidairy. In the first year of operation, Chen has a net income of 70,000 and pays dividends of 50,000 and that there is $3000 of excess annual amortization associated with Chens equipment. C. Assume Wang uses the partial equity method to account for its investment. What entries will Wang record on its books on December 31, 2010 for Chen's income, dividends and excess amortization. D. Same as C, what consolidation worksheet entries will Wang record for Chen's income, dividends and excess amortization. E. Assume Wang uses the cost method to account for its investment. What entries will Wang record on its books on December 31, 2010 for Chen's income, dividends and excess amortization. F. Same as E, what consolidation worksheet entries will Wang record for Chen's income, dividends and excess amortization. Please answer all parts