Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me here is the list of accounts Accumulated Other Comprehensive Income Accumulated Other Comprehensive Loss Bonds Payable Cash Dividends Receivable Dividend Revenue Held

please help me

here is the list of accounts

image text in transcribed

image text in transcribed

image text in transcribed

Accumulated Other Comprehensive Income Accumulated Other Comprehensive Loss Bonds Payable Cash Dividends Receivable Dividend Revenue Held for Trading Investments Income from Associates Interest Expense Interest Payable Interest Receivable Interest Revenue Investment in Associates Long-Term Investments Loss on Bond Redemption No Entry Realized Gain on Held for Trading Investments Realized Gain on Long-Term Investments Realized Loss on Held for Trading Investments Realized Loss on Investment in Associates Realized Gain on Trading Investments Realized Loss on Trading Investments Trading Investments Unrealized Gain on Held for Trading Investments Unrealized Gain on Long-Term Investments Unrealized Loss on Held for Trading Investments Unrealized Loss on Long-Term Investments Unrealized Gain on Trading Investments Unrealized Loss on Trading Investments Tarjee Inc., a publicly traded company, purchased 25% of Dong Ltd.'s common shares for $245,000 on January 1. During the year, Dong reported net income of $332,000 and declared and paid dividends of $41,000. The investment's fair value at December 31 was $295,000, the company's year end. Determine the accounts and balances that would appear on the income statement at the end of the current year, and identify where those accounts are presented on that statement assuming (a) there is significant influence and the equity method is used, (b) the investment is accounted for under the fair value through profit or loss (FVTPL) model, and (c) the investment is accounted for under the cost model. (a) Significant Influence Equity Method (b) No-Significant Influence FVTPL Model (c) Cost Model Statement of Financial Position: Long-term investments $ $ Income Statement: Other revenues and expenses Dividend revenue $ $ $ Income from associates Unrealized gain on long-term investments On January 1, Ridgewood Corporation, a publicly traded company, purchased 20% of Hook Ltd. common shares for $777,000. At December 26, Hook declared a $44,000 dividend (Ridgewood received its share that day) and reported net income of $72,000. The shares' fair value at December 31 was $821,000. (a) Record each of these transactions, assuming Ridgewood has significant influence over Hook and is using the equity method to account for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Held for Trading Investments 777000 Cash 777000 Dec. 31 Cash 8800 > Held for Trading Investments 8800 (To record dividends received) Held for Trading Investments 14400 14400 Income from Associates (To record Ridgewood's share in profit) (b) How much income would be reported by Ridgewood because of its investment in Hook? Revenue 14400 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Techniques For Analytical Review In Auditing

Authors: Kenneth W. Stringer, Trevor R. Stewart

1st Edition

047186076X, 978-0471860761

More Books

Students also viewed these Accounting questions

Question

Evaluate the integral. /2 cosx sin x dx

Answered: 1 week ago