Reden Corporation purchased 45 percent of Montgomery Company's common stock on January 1, 20X9, at underlying...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Reden Corporation purchased 45 percent of Montgomery Company's common stock on January 1, 20X9, at underlying book value of $289,800. Montgomery's balance sheet contained the following stockholders' equity balances: Preferred Stock ($4 par value, 40,000 shares issued and outstanding) Common Stock ($1 par value, 138,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Montgomery's preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of $96,000 for 20X9 and paid total dividends of $45,000. Required: Give the journal entries recorded by Reden Corporation for 20X9 related to its investment in Montgomery Company common stock. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B с Record the purchase of Montgomery Company stock. Event Note: Enter debits before credits. General Journal Debit < Prev ANDRIA Credit $ 160,000 138,000 187,000 319,000 $ 804,000 3 of 4 > Next > Reden Corporation purchased 45 percent of Montgomery Company's common stock on January 1, 20X9, at underlying book value of $289,800. Montgomery's balance sheet contained the following stockholders' equity balances: Preferred Stock ($4 par value, 40,000 shares issued and outstanding) Common Stock ($1 par value, 138,000 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Montgomery's preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of $96,000 for 20X9 and paid total dividends of $45,000. Required: Give the journal entries recorded by Reden Corporation for 20X9 related to its investment in Montgomery Company common stock. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B с Record the purchase of Montgomery Company stock. Event Note: Enter debits before credits. General Journal Debit < Prev ANDRIA Credit $ 160,000 138,000 187,000 319,000 $ 804,000 3 of 4 > Next >
Expert Answer:
Answer rating: 100% (QA)
Date January 1 20X9 Event 1 General Journal Debit Inves... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
Students also viewed these accounting questions
-
RECEPTIONIST DEALERSHIP Briefly describe the task(s) The receptionist at a car dealership Working at a car dealership has shown me several benefits, including: Sales experience, I have gained...
-
Refer to the figure. PC1 has sent out a broadcast frame. Which host(s) will receive the broadcast frame? List them all. PC1 Fa0/1 Fa0/2 Switch Fa0/3 PC3 PC2
-
Reden Corporation purchased 45 percent of Montgomery Companys common stock on January 1, 20X9, at underlying book value of $288,000. Montgomerys balance sheet contained the following stockholders...
-
Does the customer buying process end when a customer buys some merchandise? Explain your answer.
-
Use graphical addition to sketch the graph of f + g. 29. 30.
-
Why your proposed program will meet the needs of the organization as it relates to helping leaders and managers improve their skill sets?
-
Verify by direct substitution that the functions \(r^{n} \cos (n \theta)\) etc. shown in the text satisfy the Laplace equation in polar coordinates. Calculate the streamfunction for the...
-
A mixture of 20 wt% water 33% acetone and the remainder methyl isobutyl ketone is brought to equilibrium at 25C. If the total mass of the system is 1.2 kg, use the data in Figure 6.6.1 to estimate...
-
Almost all routers use TCAM to speed up table lookup. Due to the need of performing maximum sequencing matching, we need to organize the prefix entries in the lookup table according to their lengths...
-
The accompanying table shows a portion of data consisting of the January, April, July, and October average temperatures of 50 selected U.S. cities. a. Perform agglomerative hierarchical clustering to...
-
Describe the stages of combustion in S. I. engines with a p diagram. Also, describe the factors influencing the knocking in SI engine
-
Suppose the yen value of a dollar is 100/$ and that this exchange rate has an equal probability of moving to either 90.484$ or 110.517/$ in one period. To what continuously compounded rates of return...
-
Denise files her 2017 tax return on February 4, 2018. If there is no material understatement of income on her return and the return is properly signed and filed, when does the statute of limitations...
-
During the year ended December 31, 20X1, Greenacre Hospital received the following donations stated at their respective fair values: How much total revenue from donations should Greenacre report in...
-
You are an investor evaluating a depository receipt issued by Chinas Sinopec Group and selling as an N-share on the NYSE. Sinopec Groups net asset value in Chinese new yuan is CNY 20 billion. The...
-
Alison accidentally omitted $40,000 of gross income from the restaurant she owned on her 2016 tax return. The return showed gross income of $150,000 when filed on October 15, 2017. When can the IRS...
-
Explain Multiport Memory Interconnection Structures.
-
F.(3e* -2x 3 sin(2x)) is equal to 2 3 Cos 8. IT 3, t (4+@ 2 3, 1+o 1 4 Cos 4 4 1 3. 1 +4cos V7 (1+o 4 1 4 Cos 4 1+0 4-
-
When is consolidation considered inappropriate even though the parent holds a majority of the voting common shares of another company?
-
Penn Inc.s assets have the carrying values and estimated fair values as follows: Required a. Prepare a schedule to calculate the net estimated amount available for general unsecured creditors. b....
-
Gilbert City had the following transactions involving resource inflows into its general fund for the year ended June 30, 20X8: 1. The general fund levied $2,000,000 of property taxes in July 20X7....
-
Can you name five types of channels of communication?
-
How would you define your own leadership style? Do you have examples you can share with others on how you lead when called on?
-
Revisit the definition of strategic communication and then review the vignette at the beginning of the chapter. Match the different terms in the definition to the different entities in the vignette.
Study smarter with the SolutionInn App