On January 6, 2018, Bulldog Co. purchased 34% of the outstanding common stock of Gator Co....
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On January 6, 2018, Bulldog Co. purchased 34% of the outstanding common stock of Gator Co. for $212,000, Gator Co, paid total dividends of $24,000 to all shareholders on June 30, 20Y8, Gator had a net loss of $56,000 for 2018. a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. If an amount box does not require an entry, leave it blank. Jan. 6-Purchase June 30- Dividend : Dec. 31-Equity Loss Farback Check My Work 000 00 00 00 Jan 6: Record the investment at cost. June 30: Calculate the ownership percentage. Under the equity method of accounting for investments, the dividends eamed affect the investment account. Dec. 31: Calculate the ownership percentage. Under the equity method of accounting for investments, the share of income or loss affects the investment account. b. Compute the balance of Investment in Gator Co., Stock on December 31, 2018 c. How does valuing an investment under the equity method differ from valuing an investment at fair value? On January 6, 2018, Bulldog Co. purchased 34% of the outstanding common stock of Gator Co. for $212,000, Gator Co, paid total dividends of $24,000 to all shareholders on June 30, 20Y8, Gator had a net loss of $56,000 for 2018. a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock. If an amount box does not require an entry, leave it blank. Jan. 6-Purchase June 30- Dividend : Dec. 31-Equity Loss Farback Check My Work 000 00 00 00 Jan 6: Record the investment at cost. June 30: Calculate the ownership percentage. Under the equity method of accounting for investments, the dividends eamed affect the investment account. Dec. 31: Calculate the ownership percentage. Under the equity method of accounting for investments, the share of income or loss affects the investment account. b. Compute the balance of Investment in Gator Co., Stock on December 31, 2018 c. How does valuing an investment under the equity method differ from valuing an investment at fair value?
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Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
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