Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work On January 1, 2015, JenCo, bought 25% of the outstanding common shares of XYZ Corporation for $258,000 cash and has the ability

image text in transcribedimage text in transcribed

please show work

On January 1, 2015, JenCo, bought 25% of the outstanding common shares of XYZ Corporation for $258,000 cash and has the ability to significantly influence XYZ Corporation's financial and operating policies. At the date of acquisition of the shares, XYZ Corporation's net assets had a fair value of $792,000. Their carrying value was $600,000. The difference was attributable to the fair value of XYZ Corporation's buildings and its land exceeding carrying value, each accounting for one half of the difference. XYZ Corporation's net income for the year ended December 31, 2015, was $180,000. During 2015, XYZ Corporation declared and paid cash dividends of $28,000. The buildings have a remaining life of 15 years. JenCo follows IFRS. (a) Prepare all appropriate journal entries related to the investment during 2015, assuming JenCo accounts for this investment by the equity method. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). Please make sure your final answer(s) are accurate to 2 decimal places. General Joumal Account/Explanation Page 3 PR Debit Credit Date + (b) Determine the amount to be reported by JenCo as an investment on its balance sheet. Please make sure your final answer(s) are accurate to the nearest whole number. Balance sheet amount - $ (c) Determine the amount to be reported by JenCo as investment revenue on its income statement. Please make sure your final answer(s) are accurate to the nearest whole number. Income statement ar kuni = $ (d) Determine the amount to be reported by JenCo among investing activities on its cash flow statement. Please make sure your final answer(s) are accurate to the nearest whole number. Cash flow statement amount : $

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting Volume 2

Authors: Kin Lo, George Fisher

1st Edition

0137013361, 978-0137013364

More Books

Students also viewed these Accounting questions

Question

4. In Exercise 3, are the random variables X and Y independent?

Answered: 1 week ago

Question

Finally, the individual is the only person who can make it happen!

Answered: 1 week ago