Manwill Company owns 40% (30,000 shares) of Hall Companys voting stock. Since Manwill has a significant interest
Question:
Manwill Company owns 40% (30,000 shares) of Hall Company’s voting stock. Since Manwill has a significant interest in Hall, it uses the equity method of accounting for the investment. Hall reported the following information for the year:
1. Hall earned net income of $80,000.
2. Hall paid dividends of $20,000.
3. Hall’s stock value increased from $40 to $45.
Make the necessary journal entry (or entries) to record the change in value of Manwill’s investment in Hall.
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Investment in Equity Method Securities Hall Company 32000 Revenue from Investments 32000 To recog...View the full answer
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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