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Exercise 17-16 Culver Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,245,600 for
Exercise 17-16
Culver Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,245,600 for 51,900 shares. Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $699,000 for 2018. The fair value of Kulikowskis stock was $27 per share at December 31, 2018. Assume that the security is a trading security.
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Prepare the journal entries for Culver Inc. for 2017 and 2018, assuming that Culver cannot exercise significant influence over Kulikowski. (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
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
(To record dividend.)
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
(To record fair value.)
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Partially correct answer. Your answer is partially correct. Try again.
Prepare the journal entries for Culver Inc. for 2017 and 2018, assuming that Culver can exercise significant influence over Kulikowski. (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
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer
(To record dividend.)
Entry field with correct answer
Entry field with correct answer
Entry field with correct answer
Entry field with incorrect answer now contains modified data
Entry field with correct answer
Entry field with correct answer
(To record revenue.)
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New Approach To Financial Accounting No Need Of Cramming Formats
Authors: Samuel A. Olowoniyi ACA
1st Edition
148253150X, 978-1482531503
