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Problem 164A (Part Level Submission) Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company In January:r 1, 2014. by paying $879,700 for

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Problem 164A (Part Level Submission) Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company In January:r 1, 2014. by paying $879,700 for the 46,300 shares. Quayle declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle repcrted net incume cf $300,400 fur the year. At December 31, 2014, the market price of Quayle commcn stuck was $26 per share. it) Your answer is partially correct. Indicate the balance sheet and income statement account balance; at December 31, 2014, under each method of accounting. 5. 53. Unrealized gainIncome Dividend revenue Revenue from stock investments rProblem 16-4A (Part Level Submission) Heidehrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $879,700 for the 46,300 shares. Quayle declared and paid $0.50 per share casn dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $300,400 for the year. At Deoember 3].. 2014, the market price of Quayle oommon stock was $26 per share. *(3) Your answer is correct. Prepare the journal entries for Heidebrecht Design for 2014 assuming Heidebrecht Design cannot exercise signicant inuence over Quayle. (Use the cost method and assume that Quayle common stock should be classied as a trading security.) (Recard'jwrnal entn'es In the order presented In the problem. Credlt account tltl'es are automatically lndented when amount Is entered. Do not indent manually. Ifno entry is requlred, select "No entry" for the account titles and enter 0 for the amounts.) Date malt This and Bqalanl'lton Ddllt Quill: oak Investmen s: m I I! , nreallzed Gain -Incorn I *(b) Your answer is correct. Prepare the journal entries for Heidebrecht Design for 2014, assuming Heidebrecnt Design can exercise signicant inuence over Quayle. Use the equity method. (Recordjournai entries In the order presented In the problem. Credit account titles are automatically lndented when amount is entered. Do not Jndent manually. If no entry 15 required, select "No entry" for the account titles and enter a for the amounts.)

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