Problem 16-04A a-c Heidebrecht Design acquired 20% of the outstanding common stock of Pharoah Company on January 1, 2020, by paying $669,000 for the 44,600 shares. Pharoah declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Pharoah reported net income of $338,500 for the year. At December 31, 2020, the market price of Pharoah common stock was $25 per share. Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Pharoah. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when 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 Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Pharoah. Use the equity method. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when 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 Date Account Titles and Explanation Debit Credit Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting. Cost Method Equity Method Stock Investments Dividend revenue Unrealized gain income Revenue from stock investments Click if you would like to Show Work for this question: Open Show Work Problem 16-04A a-c Heidebrecht Design acquired 20% of the outstanding common stock of Pharoah Company on January 1, 2020, by paying $669,000 for the 44,600 shares. Pharoah declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Pharoah reported net income of $338,500 for the year. At December 31, 2020, the market price of Pharoah common stock was $25 per share. Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Pharoah. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when 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 Prepare the journal entries for Heidebrecht Design for 2020, assuming Heidebrecht Design can exercise significant influence over Pharoah. Use the equity method. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when 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 Date Account Titles and Explanation Debit Credit Indicate the balance sheet and income statement account balances at December 31, 2020, under each method of accounting. Cost Method Equity Method Stock Investments Dividend revenue Unrealized gain income Revenue from stock investments Click if you would like to Show Work for this question: Open Show Work
