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Please see P13-4A HW attached.

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Please see P13-4A HW attached.,P13-4A Glaser Services acquired 30% of the outstanding common stock of Nickels Company on January 1, 2008, by paying $800,000 for the 45,000 shares. Nickels declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2008. Nickels reported net income of $320,000 for the year. At December 31, 2008, the market price of Nickels common stock was $24 per share. Incorrect. Prepare the journal entries for Glaser Services for 2008 assuming Glaser cannot exercise significant influence over Nickels. (Use the cost method and assume that Nickels common stock should be classified as a trading security.) Date Account / Description Debit Credit Jan.1 Stock investments $ 800000 Cash $ 800000 Mar. 15 Cash $ 13500 Dividend revenue $ 13500 June 15 Cash $ 13500 Dividend revenue $ 13500 Sept. 15 Cash $ 13500 Dividend revenue $ 13500 Dec. 15 Cash $ 13500 Dividend revenue $ 13500 Dec. 31 $ 280000 $ 280000 Incorrect. Prepare the journal entries for Glaser Services for 2008, assuming Glaser can exercise significant influence over Nickels. Use the equity method. Date Account / Description Debit Credit Jan.1 $ 800000 Cash $ 800000 Mar. 15 Cash $ 13500 Stock investments $ 13500 June 15 Cash $ 13500 Stock investments $ 13500 Sept. 15 Cash $ 13500 Stock investments $ 13500 Dec. 15 Cash $ 13500 Stock investments $ 13500 Dec. 31 Stock investments $ 96000 $ 96000 Correct. In tabular form, indicate the investment and income statement account balances at December 31, 2008, under each method of accounting. (If answer is zero, please enter 0. Do not leave any fields blank.) Cost Method Equity Method Stock Investments Common Stock $ 1080000 $ 842000 Unrealized gain-Income 280000 0 Dividend revenue 54000 0 Revenue from investment in Nickels 0 96000,Need account for those in yellow

 

Paper#6181 | Written in 18-Jul-2015

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