Bianka Company owns 30 percent of Bargain Company. In 2011, Bargain earned $60,000 and paid $40,000 in dividends. Prepare journal entries for Bianka’s records on December 31 to record this information. Assume that the dividends are received on December 31.
Answer to relevant QuestionsFor each of the investments listed below, tell which of the following methods should be used for external financial reporting: (a) Cost-adjusted-to-market method, (b) Equity method, (c) Consolidation of parent and subsidiary ...On May 31, Fournier Company invested $98,000 in U.S. Treasury bills. The bills mature in 120 days at $100,000. Prepare journal entries to record the purchase on May 31; the adjustment to accrue interest on June 30, which is ...Sonic Manufacturing Company purchased 100 percent of the common stock of Pool Manufacturing Company for $600,000. Pool’s stockholders’ equity included common stock of $400,000 and retained earnings of $200,000. Prepare ...Bon Company owns 40 percent of the voting stock of Kiev Company. The investment account for this company on Bon’s balance sheet had a balance of $300,000 on January 1, 2011. During 2011, Kiev reported the following ...Malam Christmas Tree Company’s business—the growing and selling of Christmas trees—is seasonal. By January 1, its heavy selling season is over, and it has cash on hand that will not be needed for several months. It has ...
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