Question: On January 1 2011 Hill Corporation acquired 40 percent of

On January 1, 2011, Hill Corporation acquired 40 percent of the outstanding common stock (400 of 1,000 outstanding shares) of Valley Manufacturing Inc. for $ 60,000, which equals the book value of Valley. On December 31, 2011, Valley reported net income of $ 30,000 and declared and paid a cash dividend of $ 11,500.
1. Prepare the journal entries made by Hill to record the transactions related to its investment in Valley.
2. Give the title and amount of each item (except cash) on the December 31, 2011, balance sheet related to the investment. Name the balance sheet section in which each item appears.

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  • CreatedSeptember 22, 2015
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