Question: I posted this question before, and I received the answer. Can you help me to fill up the information on the table please. Journal entries
I posted this question before, and I received the answer. Can you help me to fill up the information on the table please.
Journal entries
| Investment in New Castle coffee --------------------------- Acquisition Expense ---------------------------- Debt setup fees ---------------------------- Other Assets -Holding ---------------------- |
Record Purchase of New Castle Coffee stock (100%)
| Investment in Newark Coffee --------------------------- Other Assets- Holding ------------------------- |
Record Purchase of Newark Coffee stock (40%)
| Other assets -Holding ---------------------------- Investment in Newark ---------------------- |
Record dividends from Newark Coffee using equity method (40%)
These are the answers I received. If you have any questions you can look , at schedule 1 in the question that I posted earlier.
| date | Account | DR | CR |
| 2018-01-01 | Net assets | 150,000 | |
| Other assets holding account | 150,000 |
| Date | Account | Dr | Cr |
| 2018-001-01 | Acquisition expense (P&L) | 12,000 | |
| Other assets- Holding Account | 12,000 |
| Date | Account | Dr | Cr |
| 2018-01-01 | Debt setup cost (asset) | 6,000 | |
| Other assets holding account | 6,000 |
Acquisition 40%
| Date | Account | Dr | Cr |
| Investment in Associate | 2,000 | ||
| Other asset holdings | 2,000 |
Dividends
| Date | Account | Dr | Cr |
| 2018-01-03 | Other assets holding account | 2,000 | |
| investment | 2,000 |
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