Question: Stuck need help with all red please (c) / Your answer is partially correct. Try again. Percy Company uses the complete equity method to record

Stuck need help with all red please

Stuck need help with all red please (c) / YourStuck need help with all red please (c) / YourStuck need help with all red please (c) / YourStuck need help with all red please (c) / Your
(c) / Your answer is partially correct. Try again. Percy Company uses the complete equity method to record its investment. The difference between book value of equity acquired and the value implied by the purchase price was attributed solely to an excess of market over book values of depreciable assets, with a remaining life of 10 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2014 V Investment in Subsidiary 393,800 Cash 393,800 (To record the investment in Song Company) Investment in Subsidiary 52,320 Equity Income 52,320 (To record equity income (loss)) Cash 19,120 Investment in Subsidial 19,120 (To record amortization) X Equity in Subsidiary Incom 1,948 v Investment in Subsidia 1,948 (To record dividend income)2015 Investment in Subsidiary 41,920 Equity Income 41,920 (To record equity income (loss)) Cash 42,000 Investment in Subsidial 42,000 (To record amortization) x Equity in Subsidiary Incom 1,948 Investment in Subsidia 1,948 (To record dividend income) 2016 Equity Loss 46,000 Investment in Subsidial 46,000 (To record equity income (loss)) X Cash 27,200 Investment in Subsidial 27,200 (To record amortization)\fExercise 4-1 Percy Company purchased 80% of the outstanding voting shares of Song Company at the beginning of 2014 for $393,800. At the time of purchase, Song Company's total stockholders' equity amounted to $467,900. Income and dividend distributions for Song Company from 2014 through 2016 are as follows: Net Income (loss) $65,400 $52,400 ($52500) Dividend distribution 23,900 52,500 34,000 Prepare journal entries on the books of Percy Company from the date of purchase through 2016 to account for its investment in Song Company under each of the following assumptions

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
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!