PLEASE DO THE JOURNAL ENTRIES related to this scenario. Thank you

please do the following journal entries:

Mimi's journal entries-amortization

Mimi's journal entries-dividend

Mimi's journal entries-equipment Gain deferral

Mimi's journal entries -equipment excess depreciation

+ D Page view A Read aloud First, we sold all of the stock we owned in Cousin for $6,000. V Draw Highlight Second, on January 1, 2021 we purchased another 45% of Uncle Company for $675,000 (bringing our ownership up to 70%). The total fair value of Uncle company is $1,500,000. Professor Garner also asked me to make sure that you knew that the correct balance in the Investment in Uncle account on 12/31/20 was $303,300, and the correct balance in the Investment in Cousin account on 12/31/20 was $6,000. We plan on holding our investment Uncle for the foreseeable future, though we could sell it if we need the cash. (It has continued to do well; we estimate the Uncle Company stock was worth $1,750,000 as of December 31, 2021!). We also appreciate the work you did a few months ago to show us the effect that purchasing Daughter Company would have on our financial statements. After reviewing it, we decided not to purchase Daughter Company. When determining the appropriate price to pay for our January 1, 2021 investment in Uncle, we determined the following information: Uncle's book value as of January 1, 2021 was $782,000. In addition, we determined that their equipment was undervalued by $88,000 and had 8 years remaining useful life, they owned a patent that was not recorded on their books, but had a fair value of $195,000 and had 15 years remaining usefirlilifuand their and was indervalued by $320.000 Highlight Uncle's book value as of January 1, 2021 was $782,000. In addition, we determined that their equipment was undervalued by $88,000 and had 8 years remaining useful life, they owned a patent that was not recorded on their books, but had a fair value of $195,000 and had 15 years remaining useful life, and their land was undervalued by $320,000. We continued to sell inventory to Uncle during 2021 (see footnote 4 of our financial statements for the details). We have not resold 20% of the inventory that we purchased from Uncle this year. However, we have resold all of the inventory that we bought from Uncle last year. I have attached a copy of preliminary balance sheets (Dec. 31, 2021), and statements of retained earnings and income statements for the year ended Dec. 31, 2021 for both our company (Mimi) and for Uncle Company. I have also attached the footnotes for our (Mimi Company's) financial statements. o Attachment A: Mimi Company Financial Statements Mimi Company Balance Sheet, As of December 31, 2021 Cash $771,100 Accounts Receivable $96,000 Inventory $165,000 Investment in Uncle Company $303,300 Investment in Cousin Company $6,000 Land and Buildings $390,000 Patent $48,000 Equipment $165,000 Other Assets $6,000 Total Assets $1,950,400 Accounts Payable $195,000 Bonds Payable $291,000 Premium on Bonds Payable $8,250 Other Liabilities $75,000 Common Stock $425,000 Additional Paid in Capital $227,500 Retained Earnings, 12/31 $728.650 Total Liabilities and Equity $1,950,400 Mimi Company Statement of Retained Earnings, for the 12 months ending December 31, 2021 Retained Earnings, 1/1/21 $537,300 Net Income $261,350 Dividends Declared $70,000 Retained Earnings, 12/31/21 $728,650 Mimi Company Income Statement, for the 12 months ending December 31, 2021 Revenues $1,295,000 Interest Income $21,000 Total Revenues $1,316,000 Cost of Sales $867,650 Interest Expense $14,000 Advertising Expense $84,000 Depreciation and Amortization Expense $89,000 Total Expenses $1,054,650 Net Income $261,350 Mimi Company - Footnotes to the Financial Statements Note 1-Summary of Significant Accounting Policies a. ACCOUNTING PRINCIPLES The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP): b. USE OF ESTIMATES The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. C. REVENUE RECOGNITION Sales are recognized upon shipment of merchandise. The Company does not provide for allowances or return of goods except for cause. When an allowance or return occurs, it is accounted for as a reduction of sales. Sales allowances or returns are not significant to the operations of the Company. d. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Depreciation and amortization for financial accounting purposes are provided by using the straight line method over the estimates useful lives of the assets Note 2-Investment Securities In accordance with U.S. GAAP, Mimi Company accounts for equity investments through which Company exercises significant influence over but does not control the investee and is not the primary beneficiary of the investee's activities are accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which do not have readily determinable fair values are accounted for under the cost method. In accordance with U.S. GAAP, the Company bases the method of accounting for equity investments on the ability to provide significant influence regardless of the percent-ownership. Note 3 ---Dividend Income Mimi Company received dividends from its investment Uncle Company during 2021. Note 4-Related Party Transactions During 2021, Mimi Company participated in transactions with a related party, Uncle Company. On January 2, 2021, Uncle Company sold equipment to Mimi Company for 80,000. As of that date, the equipment had a book value on Uncle's books of $56,000 and had a 10-year remaining expected life. Both Mimi Company and Uncle Company use the straight-line method of depreciation for machinery and equipment In addition during 2021, Mimi Company sold inventory with an original cost of $60,000 to Uncle Company for $45,000. Mimi Company - Board of Directors Joshua Kramer, Chief Executive Officer and Chairman of the Board Joshua Kramer has served as our Chief Executive Officer since October 2005 and our Chairman of the Board since inception. Mr. Kramer currently serves as a member of the board of directors of Uncle Company. Mr. Kramer holds an MBA degree from Stanford University and a B.A. from James Madidaughter University. Emily McHale, Chief Executive Officer and Chairman of the Board, AdUSA, Inc. Emily McHale has served as one of our directors since March 2006. In late 2007, Ms. McHale founded AdUSA, Inc. where she is now Executive Chairman of the Board. Previously, Ms. McHale served on the board of MarketMe, Inc. from January 2001 until May 2005. Ms. McHale holds a B.S. in Marketing from the University of Missouri. Kyle Marry, Investor Kyle Marry has served as one of our directors since July 2008. Mr. Marry was previously on the board of Playtime, Inc. from June 2000 until March 2004. From 1978 until his retirement in 1999, Mr. Marry served in management roles at Accounting for You, Inc. where he became worldwide managing partner of market development and a member of the firm's executive committee. Mr. Marry holds an MBA degree from Harvard as well as a B.S. in Accounting from Boston College Attachment: Uncle Company Financial Statements Unde Company Balance Sheet, As of December 31, 2021 Cash Accounts Receivable Inventory Land and Buildings Software Equipment Other Assets Total Assets Accounts Payable Bonds Payable Discount on Bonds Payable Other Liabilities Common Stock Additional Paid in Capital Retained Earnings, 12/31 Total Liabilities and Equity $150,000 $75,000 $210.000 $269,000 $146,000 $86,000 58.000 $944,000 $16,000 $38,000 157.000 $10,000 $100,000 $264,000 5510.000 $944,000 Uncle Company Statement of Retained Earnings for the 12 months ending December 31, 2021 Retained Earnings, 1/1/21 $418.000 Net Income $110,000 Dividends Declared $10.000 Retained Earnings 12/31/21 SS18.00 Uncle Company Income Statement, for the 12 months ending December 31, 2021 Revenge $333,000 Interest income $2.000 Gain on Sale of Equipment 2020 Total Revenues 5364.000 Cost of 5168.00 estante 34 Advent SISUXIO DEMIE Itt perses Net Income 5110.000 + D Page view A Read aloud First, we sold all of the stock we owned in Cousin for $6,000. V Draw Highlight Second, on January 1, 2021 we purchased another 45% of Uncle Company for $675,000 (bringing our ownership up to 70%). The total fair value of Uncle company is $1,500,000. Professor Garner also asked me to make sure that you knew that the correct balance in the Investment in Uncle account on 12/31/20 was $303,300, and the correct balance in the Investment in Cousin account on 12/31/20 was $6,000. We plan on holding our investment Uncle for the foreseeable future, though we could sell it if we need the cash. (It has continued to do well; we estimate the Uncle Company stock was worth $1,750,000 as of December 31, 2021!). We also appreciate the work you did a few months ago to show us the effect that purchasing Daughter Company would have on our financial statements. After reviewing it, we decided not to purchase Daughter Company. When determining the appropriate price to pay for our January 1, 2021 investment in Uncle, we determined the following information: Uncle's book value as of January 1, 2021 was $782,000. In addition, we determined that their equipment was undervalued by $88,000 and had 8 years remaining useful life, they owned a patent that was not recorded on their books, but had a fair value of $195,000 and had 15 years remaining usefirlilifuand their and was indervalued by $320.000 Highlight Uncle's book value as of January 1, 2021 was $782,000. In addition, we determined that their equipment was undervalued by $88,000 and had 8 years remaining useful life, they owned a patent that was not recorded on their books, but had a fair value of $195,000 and had 15 years remaining useful life, and their land was undervalued by $320,000. We continued to sell inventory to Uncle during 2021 (see footnote 4 of our financial statements for the details). We have not resold 20% of the inventory that we purchased from Uncle this year. However, we have resold all of the inventory that we bought from Uncle last year. I have attached a copy of preliminary balance sheets (Dec. 31, 2021), and statements of retained earnings and income statements for the year ended Dec. 31, 2021 for both our company (Mimi) and for Uncle Company. I have also attached the footnotes for our (Mimi Company's) financial statements. o Attachment A: Mimi Company Financial Statements Mimi Company Balance Sheet, As of December 31, 2021 Cash $771,100 Accounts Receivable $96,000 Inventory $165,000 Investment in Uncle Company $303,300 Investment in Cousin Company $6,000 Land and Buildings $390,000 Patent $48,000 Equipment $165,000 Other Assets $6,000 Total Assets $1,950,400 Accounts Payable $195,000 Bonds Payable $291,000 Premium on Bonds Payable $8,250 Other Liabilities $75,000 Common Stock $425,000 Additional Paid in Capital $227,500 Retained Earnings, 12/31 $728.650 Total Liabilities and Equity $1,950,400 Mimi Company Statement of Retained Earnings, for the 12 months ending December 31, 2021 Retained Earnings, 1/1/21 $537,300 Net Income $261,350 Dividends Declared $70,000 Retained Earnings, 12/31/21 $728,650 Mimi Company Income Statement, for the 12 months ending December 31, 2021 Revenues $1,295,000 Interest Income $21,000 Total Revenues $1,316,000 Cost of Sales $867,650 Interest Expense $14,000 Advertising Expense $84,000 Depreciation and Amortization Expense $89,000 Total Expenses $1,054,650 Net Income $261,350 Mimi Company - Footnotes to the Financial Statements Note 1-Summary of Significant Accounting Policies a. ACCOUNTING PRINCIPLES The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP): b. USE OF ESTIMATES The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. C. REVENUE RECOGNITION Sales are recognized upon shipment of merchandise. The Company does not provide for allowances or return of goods except for cause. When an allowance or return occurs, it is accounted for as a reduction of sales. Sales allowances or returns are not significant to the operations of the Company. d. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are carried at cost. Depreciation and amortization for financial accounting purposes are provided by using the straight line method over the estimates useful lives of the assets Note 2-Investment Securities In accordance with U.S. GAAP, Mimi Company accounts for equity investments through which Company exercises significant influence over but does not control the investee and is not the primary beneficiary of the investee's activities are accounted for using the equity method. Investments through which we are not able to exercise significant influence over the investee and which do not have readily determinable fair values are accounted for under the cost method. In accordance with U.S. GAAP, the Company bases the method of accounting for equity investments on the ability to provide significant influence regardless of the percent-ownership. Note 3 ---Dividend Income Mimi Company received dividends from its investment Uncle Company during 2021. Note 4-Related Party Transactions During 2021, Mimi Company participated in transactions with a related party, Uncle Company. On January 2, 2021, Uncle Company sold equipment to Mimi Company for 80,000. As of that date, the equipment had a book value on Uncle's books of $56,000 and had a 10-year remaining expected life. Both Mimi Company and Uncle Company use the straight-line method of depreciation for machinery and equipment In addition during 2021, Mimi Company sold inventory with an original cost of $60,000 to Uncle Company for $45,000. Mimi Company - Board of Directors Joshua Kramer, Chief Executive Officer and Chairman of the Board Joshua Kramer has served as our Chief Executive Officer since October 2005 and our Chairman of the Board since inception. Mr. Kramer currently serves as a member of the board of directors of Uncle Company. Mr. Kramer holds an MBA degree from Stanford University and a B.A. from James Madidaughter University. Emily McHale, Chief Executive Officer and Chairman of the Board, AdUSA, Inc. Emily McHale has served as one of our directors since March 2006. In late 2007, Ms. McHale founded AdUSA, Inc. where she is now Executive Chairman of the Board. Previously, Ms. McHale served on the board of MarketMe, Inc. from January 2001 until May 2005. Ms. McHale holds a B.S. in Marketing from the University of Missouri. Kyle Marry, Investor Kyle Marry has served as one of our directors since July 2008. Mr. Marry was previously on the board of Playtime, Inc. from June 2000 until March 2004. From 1978 until his retirement in 1999, Mr. Marry served in management roles at Accounting for You, Inc. where he became worldwide managing partner of market development and a member of the firm's executive committee. Mr. Marry holds an MBA degree from Harvard as well as a B.S. in Accounting from Boston College Attachment: Uncle Company Financial Statements Unde Company Balance Sheet, As of December 31, 2021 Cash Accounts Receivable Inventory Land and Buildings Software Equipment Other Assets Total Assets Accounts Payable Bonds Payable Discount on Bonds Payable Other Liabilities Common Stock Additional Paid in Capital Retained Earnings, 12/31 Total Liabilities and Equity $150,000 $75,000 $210.000 $269,000 $146,000 $86,000 58.000 $944,000 $16,000 $38,000 157.000 $10,000 $100,000 $264,000 5510.000 $944,000 Uncle Company Statement of Retained Earnings for the 12 months ending December 31, 2021 Retained Earnings, 1/1/21 $418.000 Net Income $110,000 Dividends Declared $10.000 Retained Earnings 12/31/21 SS18.00 Uncle Company Income Statement, for the 12 months ending December 31, 2021 Revenge $333,000 Interest income $2.000 Gain on Sale of Equipment 2020 Total Revenues 5364.000 Cost of 5168.00 estante 34 Advent SISUXIO DEMIE Itt perses Net Income 5110.000