Instructions Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $180,000 on...
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Instructions Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $180,000 on January 1, 2019, and obtained significant influence. The purchase price of the shares was equal to their book value. During 2019, the following information is available for Crowell: Mar. 31 Declared and paid a cash dividend of $40,000. June 30 Sept. 30 Dec. 31 Reported semiannual earnings of $120,000 for the first half of 2019. Declared and paid a cash dividend of $40,000. Reported semiannual earnings of $140,000 for the second half of 2019. Required: 1. Prepare journal entries for Miller to reflect the preceding information. 2. What is the balance in Miller's investment account on December 31, 2019? Chart of Accounts ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation REVENUE 411 Sales Revenue 423 Investment Income 431 Interest Income 192 Investment in Stock: Crowell Corporation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings General Journal 1. Prepare journal entries for Miller to reflect the 2019 transactions. General Journal Instructions 1 2 3 4 5 6 7 GENERAL JOURNAL DATE ACCOUNT TITLE PAGE 1 POST. REF. DEBIT CREDIT Analysis 2. What is the balance in Miller's investment account on December 31, 2019? Instructions Miller Corporation acquired 30% of the outstanding common stock of Crowell Corporation for $180,000 on January 1, 2019, and obtained significant influence. The purchase price of the shares was equal to their book value. During 2019, the following information is available for Crowell: Mar. 31 Declared and paid a cash dividend of $40,000. June 30 Sept. 30 Dec. 31 Reported semiannual earnings of $120,000 for the first half of 2019. Declared and paid a cash dividend of $40,000. Reported semiannual earnings of $140,000 for the second half of 2019. Required: 1. Prepare journal entries for Miller to reflect the preceding information. 2. What is the balance in Miller's investment account on December 31, 2019? Chart of Accounts ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation REVENUE 411 Sales Revenue 423 Investment Income 431 Interest Income 192 Investment in Stock: Crowell Corporation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings General Journal 1. Prepare journal entries for Miller to reflect the 2019 transactions. General Journal Instructions 1 2 3 4 5 6 7 GENERAL JOURNAL DATE ACCOUNT TITLE PAGE 1 POST. REF. DEBIT CREDIT Analysis 2. What is the balance in Miller's investment account on December 31, 2019?
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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