Question: Equity method 5. On January 1, 2002, Alsop Corp. acquired 30,000 shares out of the 100,000 outstanding ordinary shares of Stone Services Inc. for

Equity method 5. On January 1, 2002, Alsop Corp. acquired 30,000 shares

Equity method 5. On January 1, 2002, Alsop Corp. acquired 30,000 shares out of the 100,000 outstanding ordinary shares of Stone Services Inc. for P1,300,000 as a long-term investment. Data from Stone's 2002 financial statements include the following: a. b. . d. Profit P330,000 Less: Cash dividends paid Increase in retained earnings e. 160,000 (Ad P170,000 The fair value of Stone Services Inc. ordinary shares on December 31, 2002, was P98 per share. Alsop Corp. does not have any other noncurrent investments in securities. Requirement: Prepare the necessary journal entries for Alsop's investment in Stone Services Inc. ordinary shares. 8. (Adapted) 7.

Step by Step Solution

★★★★★

3.44 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Entries in the books Mcop Comp when inves tments anu nunchased Investment in ston senvi lafinc ... 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

Students Have Also Explored These Related Accounting Questions!

Prepare the necessary journal entries to account for the purchases and year-end adjustments of the inventory of Payson Manufacturing Company. All purchases are made on account. Payson uses the...

Prepare the necessary journal entries to record each of the following transactions of Dewey County College. 1. Tuition and fees charged for the fall 20X8 semester totaled $3,700,000; $100,000 of this...

Prepare the necessary journal entries to record the following transaction for the city of Small ville during 2017 in the general fund and account groups, and specify the account group used. Entries...

31? a. Interest Receivable.. 120 Interest Revenue b. Debt Investments 120 120 Interest Revenue c. Interest Receivable..... 120 123 Interest Revenue d. Debt Investments 123 123 Interest Revenue 123 2)...

Need ONLY an answer to Part C, step 1, questions 1 and 3. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company Assigned to you Find the most...

Locate and use an audited annual financial statement STEP 1: The Company Assigned to you Find the most recent audited annual financial statement online for the Canadian public company assigned to the...

can any expert help me with the below assignment just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question...

Need the answer to Part C question only questions regarding the Step 2 - 7th question. Term Project Part A: Understanding Financial Statements Locate and use an annual report STEP 1: The Company...

Only Need a the answer for STEP 1 of "PART C" Need a sample answer doesn't have to be extremely detailed or anything. Term Project Part A: Understanding Financial Statements Locate and use an annual...

GER Section 1 of 4 Numerical A US Associate Consulting 2020 Question # 1 Revisit x An MBA aspirant leaves his job where he had an annual salary of $14,000 and took admission in one-year course in a...

Visit the FBIs web site and review a posting entitled Common Fraud Schemes. Select one of the fraud schemes and prepare a slide presentation for the class. This presentation should explain how the...

Find the second derivative with respect to the domain variable for v ( y ) = y ^ 2 + 3 y - 5

For the current year ending December 31, McAdams Industries expects fixed costs of $1,860,000, a unit variable cost of $105, and a unit selling price of $125. a. Compute the anticipated break-even...

Ryans Express has total credit sales for the year of $180,000 and estimates that 3% of its credit sales will be uncollectible. Record the end-of-period adjusting entry on December 31, in general...

For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses (in millions): Sales ................................................................. $16,488 Food...

a. Matzinger Company budgets sales of $10,400,000, fixed costs of $1,100,000, and variable costs of $6,656,000. What is the contribution margin ratio for Matzinger Company? b. If the contribution...

Miss River Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by...

A leader who is a(n) BLANK may effectively inspire others with a vision yet be weak in executing strategic action. uninvolved dreamer doer

5. On January 1, 2015, Parent Company acquired 100% of the common stock of Sub Company for $300,000. On this date Sub had total owners' equity of $250,000. Any excess of cost over book value is...

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit $ 55,100 $ 44,700 50,000 163,000 83,750...

S AFAWorksheet - Template - Protected... Saved to this PC v Search Ryan hohammed @ - o X File Home Insert Pagelayout Formulas Data Review View Automate Help 'l\\_} PROTECTED VIEW Be carefulfiles from...

Chapman Company obtains 100 percent of Abernethy Companys stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit Accounts payable $ 59,500 Accounts...

C Company obtains 100 percent of A Companys stock on January 1, 2025. As of that date, A has the following trial balance: Debit Credit Accounts payable $ 53,700 Accounts receivable $ 41,000...

Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2020. As of that date, Abernethy has the following trial balance: Debit Credit 58,900 $ 41,500 50,000 211,000 70, 750...