Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Reculeed latermatiom As a long taim ivestment, Painter' Equipment Company purchased 20% of AMC Sutalies incorpocited alo ood shaies far 3490000 at the beginning of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Reculeed latermatiom As a long taim ivestment, Painter' Equipment Company purchased 20% of AMC Sutalies incorpocited alo ood shaies far 3490000 at the beginning of the fiscal yestof boch com hander On the gutchate date. mhe fair value and bock value at cheits per thare At y war erid the fait value of the shates is 5 sto 900 2. Assume tignaicant inthuence was acquired Prepate the appropriate journal entries from the purchase through the end af the ye ar Wote If no entry is reguired for a transection/event, belect "No journal entay required" in the first account field. Journal entry worksheet fecord the purchase of AMC 5 supples thares for $490,000 as a long-term investment. Aingsined information in 4490000 at the beghning of the fiscal yeat of both comphanel. On the pocthate thate. the fot walao aryd book vhi ge of canti ber share. At youl end the furivalun of the shates is $516000 Journal entry worksheet Neguired information Note, If ne entry is reauired for a transacbonsevent, select "No jounat entry reguired" in the first account fieid. Riequlred information As a longlemi investment. Painters' Equipment Comperty purchased 20% of AMC Supplies incorporated's ato oob shames Aor S490000 at the begening of the fiscat year of both companies. On the purchase date, the fair vilue and book vation of AMC and assets were equat During the year. AMC earned net income of $260000 and disirbuted cosh dividends of 20 . cunts per share, At yoar-elit, the tair value of the shares is $516.000 2. Assume signicant influence was acguired Prepare the apqropriate joumal enties fom the purchase throught the end of the year. Notei if no entry as requlied for a transactionievent, select "No Journal entry requited" in the first account field. Journal entry worksheet Ilecard any necessary year-end adjusting foumal entry when the fair value of the shares theld are 5516,000 at vear-end

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

Integrated Audit Practice Case

Authors: David S. Kerr, Randal J. Elder, Alvin A. Arens

7th Edition

0912503688, 978-0912503684

More Books

Students also viewed these Accounting questions

Question

1. What is the origin of the communication discipline?

Answered: 1 week ago

Question

2. What methods do communication scholars use to conduct research?

Answered: 1 week ago