2 Problem 08-03 (LO2) 10 points On January 1, Year 4, Hidden Company acquired 25,000 ordinary shares of Jovano Company for $146,250 when the shareholders' equity of Jovano was as follows: Ordinary shares (100,000 no par value shares issued and outstanding) Retained earnings $200,000 342,000 $542,000 eBook Print References In addition, Hidden purchased 20,000 shares in Jovano for $123,180 on January 1, Year 5, and 10,000 shares in Jovano for $63,720 on January 1, Year 6. The following are the statements of retained earnings for Jovano from Year 4 to Year 6: Retained earnings, beginning of year Profit Year 4 $342,000 Year 5 $378,000 Year 6 $415,000 56,000 58,000 62,000 Dividends Retained earnings, end of year (20,000) (21,000) (22,000) $378,000 $415,000 $455,000 Additional Information Jovano's ordinary shares are publicly traded. The market value of the shares at the close on December 31 of one year was the same as the market value on January 1 of the next year. Any acquisition differential is allocated to customer lists with a useful life of three years on each of the three acquisition dates. Neither company has any customer lists recorded on their separate entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) For each of Years 4 to 6, prepare the journal entries that Hidden would use to account for its investment in Jovano under the (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate 10 Z points eBook Print References Required: (a) For each of Years 4 to 6, prepare the journal entries that Hidden would use to account for its investment in Jovano under the (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round intermediate calculations and final answers to nearest dollar amount.) (i) Cost method View transaction list Journal entry worksheet 1 2 Record the investment in shares of Jovano company in the books of Hidden Company. Note: Enter debits before credits. Date Year 4 General Journal Debit Credit Investment in Jovano Cash 146,250 146,250 Record entry Clear entry View general journal Z View transaction list 10 points Journal entry worksheet 1 2 eBook Record the investment in shares of Jovano company in the books of Hidden Company. Print References Note: Enter debits before credits. Date Year 5 General Journal Debit Credit Investment in Jovano Cash 123,180 123,180 Record entry Clear entry View general journal View transaction list > Z View transaction list 10 points Journal entry worksheet eBook Print 1 2 Record the investment in shares of Jovano company in the books of Hidden Company. Note: Enter debits before credits. Date Year 6 General Journal Debit Credit References Investment in Jovano Cash 63,720 63,720 Record entry Clear entry View general journal (ii) Equity method View transaction list 10 points eBook Print References View transaction list Journal entry worksheet 2 3 Record the investment in shares of Jovano company in the books of Hidden Company. Note: Enter debits before credits. Date Year 4 General Journal Debit Credit Investment in Jovano Cash 146,250 146,250 Record entry Clear entry View general journal View transaction list 10 points Journal entry worksheet 2 3 eBook Record the investment in shares of Jovano company in the books of Hidden Company. Note: Enter debits before credits. Print Date Year 5 General Journal Debit Credit Investment in Jovano Cash 123,180 123,180 References Record entry Clear entry View general journal View transaction list Journal entry worksheet Z 1 2 3 4 5 Record the investment in shares of Jovano company in the books of Hidden Company. 10 points Note: Enter debits before credits. eBook Print References Date Year 6 General Journal Debit Credit Investment in Jovano Cash 63,720 63,720 Record entry Clear entry View general journal > (b) Calculate the balance in Hidden's investment in Jovano account at the end of Year 4, 5, and 6 under the (Round intermediate calculations and final answers to nearest dollar amount. Omit $ sign in your response.) (i) Cost method (ii) Equity method End of Year 4 End of Year 5 End of Year 6 Investment in Jovano Cost Method Equity Method $ $ $ $ $ $ 10 points Record entry Clear entry View general journal eBook (b) Calculate the balance in Hidden's investment in Jovano account at the end of Year 4, 5, and 6 under the (Round intermediate calculations and final answers to nearest dollar amount. Omit $ sign in your response.) (i) Cost method Print (ii) Equity method Investment in Jovano Cost Method Equity Method References End of Year 4 End of Year 5 End of Year 6 $ $ $ $ $ $ (c) At the end of Year 6, reconcile the balance in the investment account under the equity method to Jovano's shareholders' equity and the undepleted acquisition differential. (Round your answer to nearest dollar amount. Omit $ sign in your response.) Reconciled balance in investment account (d) Calculate the following account balances for the Year 6 consolidated financial statements: (Round your answer to nearest dollar amount. Omit $ sign in your response.) (i) Customer lists (ii) Non-controlling interest on the statement of financial position $ $ (iii) Consolidated net income attributable to the non-controlling interest