please help me to solve this 12 JE, i need it by today, thanks!
Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $347,200 in cash. The book value of Kinman's net assets on that date was $680,000, although one of the company's buildings, with a $64,800 carrying amount, was actually worth $117,800. This building had a 10-year remaining life. Kinman owned a royalty agreement with 20-year remaining life that was undervalued by $135,000. Kinman sold inventory with an original cost of $77,700 to Harper during 2020 at a price of $111,000. Harper still held $24,900 (transfer price) of this amount in inventory as of December 31, 2020. These goods are to be sold to outside parties during 2021. Kinman reported a $45,600 net loss and a $24,200 other comprehensive loss for 2020. The company still manages to declare and pay a $13,000 cash dividend during the year. During 2021, Kinman reported a $49,600 net income and declared and paid a cash dividend of $15,000. It made additional inventory sales of $114,000 to Harper during the period. The original cost of the merchandise was $71,250. All but 30 percent of this inventory had been resold to outside parties by the end of the 2021 fiscal year. Prepare all journal entries for Harper for 2020 and 2021 in connection with this investment. Assume that the equity method is applied. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) round intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 12 Record the initial investment. Note: Enter debits before credits Date 01/01/2020 General Journal Debit Credit Record entry Clear entry View general Journal Journal entry worksheet Record the dividend declaration. Note: Enter debits before credits. Date 12/31/2020 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the accrual of income and OCI from equity investee. Note: Enter debits before credits. Date General Journal Debit Credit 12/31/2020 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the dividend declaration. Note: Enter debits before credits. Date 12/31/2021 General Journal Debit Credit Record entry Clear entry View general journal und intermediate calculations.) View transaction list Journal entry worksheet Record the 40% accrual of income as earned by equity investee. Note: Enter debits before credits. Date 12/31/2021 General Journal Debit Credit Record entry Clear entry View general journal und intermediate calculations.) View transaction list Journal entry worksheet Record the amortization relating to acquisition of Kinman. Note: Enter debits before credits. Date 12/31/2021 General Journal Debit Credit Record entry Clear entry View general journal d intermediate calculations.) ew transaction list Journal entry worksheet 1 ..... 5 6 7 8 9 10 12 > Record the recognized income deferred from 2020. Note: Enter debits before credits. Date General Journal 12/31/2021 Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 .... 5 6 7 8 9 10 11 12 > Record the deferred unrealized gross profit on intra-entity sale. Note: Enter debits before credits. Date 12/31/2021 General Journal Debit Credit Record entry Clear entry View general journal
