Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $697,600 for the 43,600 shares. Quayle declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported a net income of $324,400 for the year. At December 31, 2014, the market price of Quayle common stock was $26 per share.

 Prepare the journal entries for Heidebrecht Design for 2014, assuming Heidebrecht Design can exercise significant influence over Quayle. Use the equity method

Answer rating: 100% (QA)

112014 Trading securities Dr 697600 Cash Cr 697600 3152... View the full answer