Not sure what I did wrong can someone please help its been a few days and if you cant do everything for me thats fine I just need o be pointed in the right direction. Natalie has been approached by Ken Thornton, a shareholder of The Beanery Coffee Inc. Ken wants to retire and would like to sell his 1,000 shares in The Beanery Coffee, which represents 30% of all shares issued. The Beanery is currently operated by Ken's twin daughters, who each own 35% of the common shares. The Beanery not only operates a coffee shop but also roasts and sells beans to retailers, under the name "Rocky Mountain Beanery."
The business has been operating for approximately 5 years. In the last 2 years Ken has lost interest and left the day-to-day operations to his daughters. Both daughters at times find the work at the coffee shop overwhelming. They would like to have a third shareholder involved to take over some of the responsibilities of running a small business. Both feel that Natalie and Curtis are entrepreneurial in spirit and that their expertise would be a welcome addition to the business operation. The twins have also said that they plan to operate this business for another 10 years and then retire.
Ken has met with Curtis and Natalie to discuss the business operation. All have concluded that there would be many advantages for Cookie & Coffee Creations Inc. to acquire an interest in The Beanery Coffee. One of the major advantages would be volume discounts for purchases of the coffee bean inventory.
Despite the apparent advantages, however, Natalie and Curtis are still not convinced that they should participate in this business venture.
X C Get Homework Help With Chegg x C Natalie Has Been Approached By x WileyPLUS X B Grades - ACC122C01 Accounting x https://edugen.wileyplus.com/edugen/Iti/main.uni PLUS Weygandt, Accounting Principles, 13e Help | System Announcements CALCULATOR PRINTER VERSION 1 BACK NEXT OURCES Cookie Creations 16 b-d2 Natalie has been approached by Ken Thornton, a shareholder of The Beanery Coffee Inc. Ken wants to retire and would like to sell his 1,000 shares in The Beanery Coffee, which represents 30% of all shares s 15 a-d issued. The Beanery is currently operated by Ken's twin daughters, who each own 35% of the common shares. The Beanery not only operates a coffee shop but also roasts and sells beans to retailers, under the Is 16 b- name "Rocky Mountain Beanery." The business has been operating for approximately 5 years. In the last 2 years Ken has lost interest and left the day-to-day operations to his daughters. Both daughters at times find the work at the coffee shop overwhelming. They would like to have a third shareholder involved to take over some of the responsibilities of running a small business. Both feel that Natalie and Curtis are entrepreneurial in spirit and that their expertise would be a welcome addition to the business operation. The twins have also said that they plan to operate this business for another 10 years and then retire. 2y Study Ken has met with Curtis and Natalie to discuss the business operation. All have concluded that there would be many advantages for Cookie & Coffee Creations Inc. to acquire an interest in The Beanery Coffee. One of the major advantages would be volume discounts for purchases of the coffee bean inventory. Despite the apparent advantages, however, Natalie and Curtis are still not convinced that they should participate in this business venture. Your answer is partially correct. Try again. Assume that Ken wants to sell his 1,000 shares of The Beanery Coffee for $15,000. Prepare the journal entry required if Cookie & Coffee Creations Inc. buys Ken's shares. ( If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. ) Account Titles and Explanation Debit Credit X 10,00 15,000 Cash SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct, Try again. Assume that Cookie & Coffee Creations Inc. buys the shares and in the following year The Beanery Coffee earns $50,000 net income and pays $25, 000 in dividends. 10:26 AM 3/7/2019 WE U e pe here to searchC https://edugen.wileyplus.com/edugen/Iti/main.uni yPLUS Weygandt, Accounting Principles, 13e Help | System Announcements T RESOURCES CALCULATOR PRIN COMP eations 15 a-d Your answer is partially correct. Try again. eations 16 b- Assume that Cookie & Coffee Creations Inc. buys the shares and in the following year The Beanery Coffee earns $50,000 net income and pays $25,000 in dividends. re Prepare the journal entries required under both the cost method and the equity method of accounting for this investment. ( If no entry is required, select "No Entry" for the acco ults by Study the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cost Method: X Dividend Revenue 7500 Revenue from Stock Investments 7,500 Equity Method: x Dividend Revenue 7500 Dividend Revenue 7 500 (To record equity in Beanery's net income) Cash 10000 X Unrealized Gain or Loss-Equity 10000 (To record dividends received) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Type here to search EH e WECoffee Creations Inc. Investment would be classified as a Long-term Investments in balance sheet. SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. What amount would appear on the balance sheet under each of the methods of accounting for the investment? Cost method 10,000 Equity method 17,500 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Question here to search e DELLLINK TO TEXT \\ LINK TO TEXT* Cookie Creations 16 6- 42. List Of Accounts - Google Chrome* a https: / / edugen . willeyplus . com/ edugen / shared/ assignment / test / qchart . uni ? itemid = EAT_ 1578070 . |~| Your answer is correct Identify where this investment would b List Of Accounts Investment would be classified as a Cookie Creations 16 6 - d 2 Cash SHOW LIST OF ACCOUNTS \\\\ SHOW SOLUTI Debt Investments Dividend Revenue* LINK TO TEXT LINK TO TEXT* Fair Value Adjustment- Available - for- Sale Fair Value Adjustment - Stock* Fair Value Adjustment -Trading* Gain on Sale of Debt Investments Gain on Sale of Stock Investments* \\*| Your answer is incorrect . Try again Interest Receivable Interest Revenue Loss on Sale of Debt Investments What amount would appear on the bala Loss on Sale of Stock Investments No Entry Revenue from Stock Investments Cost method 10, 000 Short - Term Investments* Stock Investments* Unrealized Gain or Loss - Equity* Equity method 17 , 500 Unrealized Gain or Loss - Income Click if you would like to Show Wor LINK TO TEXT LINK TO TEXT* Question Atte ^nce ( a selected_ question = quest: 4 426367#` *gen / shared / assignment / test / qview . uni ? operation = take - question - not`he^ Catch
