Question: On January 1 Royal Company purchased a 25% equity in Connors Ltd, for 180,000. At December 31 Connors declared and paid a 60,000 cash dividend

On January 1 Royal Company purchased a 25% equity in Connors Ltd, for £180,000. At December 31 Connors declared and paid a £60,000 cash dividend and reported net income of £200,000.

Instructions

(a) Journalize the transactions.

(b) Determine the amount to be reported as an investment in Connors at December 31.

Step by Step Solution

★★★★★

3.38 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Jan 1 Share Investments 180000 Cash 180000 Dec 31 Cash 60000 X 25 150... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

245-B-A-I (3279).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

ces Exercise 3-21 (Algo) Complete the accounting cycle (LO3-3, 3-4, 3-5, 3-6) On January 1, 2024, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Cash...

In 2017, Taymouth Inc. reported net income of $100,000. What would be the effect on retained earnings on Taymouth's 2017 balance sheet and on its 2018 income statement if it didn't record a closing...

In 2017, Anyox Ltd. (Anyox) reported net income of $200,000. All revenues and expenses were in cash, except for a $30,000 depreciation expense. Required: a. Calculate cash from operations for Anyox...

On January 1 Kwun Corporation purchased a 25% equity in Connors Corporation for $180,000. At December 31 Connors declared and paid a $60,000 cash dividend and reported net income of $200,000....

On January 1, Pharoah SpA purchased a 25% equity in Morelli SpA for 177,000. At December 31, Morelli declared and paid 50,200 cash dividend and reported net income of $ 196,000. Journalize the...

On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $171,000. At December 31, Helbert declared and paid a $59,400 cash dividend and reported net income of $170,500. on...

On January 1, Cullumber Corporation purchased a 25% equity investment in Shane Corporation for $160,100. At December 31, Shane declared and paid a $80,200 cash dividend and reported net income of...

On January 1, Oriole Corporation purchased a 25% equity in Helbert Corporation for $156,000. At December 31, Helbert declared and paid a $49,900 cash dividend and reported net income of $161,000. (a)...

Answer B On January 1, Crane Corporation purchased a 25% equity in Helbert Corporation for $152,500. At December 31, Helbert declared and paid a $45,100 cash dividend and reported net income of...

On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $167,000. At December 31, Helbert declared and paid a $46,400 cash dividend and reported net income of $231,000....

In an isentropic nozzle the specific flow energy (j) and entropy (s) remain constant along the flow. Superheated steam flows steadily through an isentropic nozzle for which the following properties...

Unilever sells products such as Ben & Jerry's and Breyer's ice cream, Hellman's mayonnaise, and Lipton tea. The company published a report showing comparisons of sustainability indicators for 2008...

Explain the tax effects that S corporation status has on shareholders.

In addition to the earnings multiplier, what are some other relative valuation ratios?

Professional Design Company specializes in uniform design for foodservices. Its trial balance on December 31 shows Supplies $9,000 and Supplies Expense $0. On December 31, there are $2,000 of...

The bookkeeper for Royal Cruises asks you to prepare the following accrued adjusting entries at December 31. 1. Interest on notes payable of $500 is accrued. 2. Services provided but unbilled total...

The trial balance of Hawaiian Catering Company includes the following balance sheet accounts. Identify the accounts that require adjustment. For each account that requires adjustment, indicate (a)...

4) How many different ways could you arrange this fruity line-up? We have 13 pieces of fruit, but we have 3 oranges that are the same, 6 bananas that are the same, and 4 apples that are the same, so...

Accounting Break-Even Price Variable Cost Project Point (in units) per Unit per Unit Fixed Costs Depreciation 8.270 355 599,000 $26,000 B 770 $1.010 $502,000 S103,000 1.950 $20 $14 $4,800 D 1.950 $20...

When a firm's ROE W lower than its recjuired rate of return of stock, its PUGOS and when the two piwacks more earnings. It will shareholder's wealth Nevence Native decente Positive dere...