The Miller Corporation acquired 30% of the outstanding common stock of the Crowell Corporation for $160,000 on
Question:
The Miller Corporation acquired 30% of the outstanding common stock of the Crowell Corporation for $160,000 on January 1, 2007 and obtained significant influence. The purchase price of the shares was equal to their book value. During 2007, the following information is available for Crowell:
Mar. 31 Declared and paid a cash dividend of $50,000
June 30 Reported semiannual earnings of $120,000 for the first half of 2007
Sept. 30 Declared and paid a cash dividend of $50,000
Dec. 31 Reported semiannual earnings of $140,000 for the second half of 2007
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, 2007?
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
Step by Step Answer:
1 2007 Jan 1 Investment in Stock Crowell Corporation 160000 Cash 160000 ...View the full answer
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
