Required information The following information applies to the questions displayed below.] On July 12, 2018, Rossow Corporation purchased 1,000 shares of Reimer Company for $18,000. The following information applies to the fair value of Reimer Company: Per Share 12/31/2018 $23 12/31/2019 20 12/31/2020 13 Reimer Company declares and pays cash dividends of $3 per share on May 1 of each year. 2. Prepare journal entries to record the facts in the case, assuming Rossow owns 40 percent of Reimer's stock. Reimer reported $25,000 of net income each year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 345 6 7 89 Record the purchase of 1,000 shares (40%) of Reimer Company for $18,000. The company will record the investment under the equity method of accounting Note: Enter debits before credits. Date General Journal DebitCredit July 12, 2018 Record entry Clear entry View general journal Journal entry worksheet 12 3 45 6 7 8 9 Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $25,000 in 2018 Note: Enter debits before credits. Date December 31, 2018 General Journal Debit Credi . Record entry Clear entry View general journal Journal entry worksheet 12 3 4 5 6 789 Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2018 is $23 per share. Note: Enter debits before credits. |Debit Credit Date December 31, 2018 General Journal Record entry Clear entry View general journal Journal entry worksheet Record the receipt of cash dividends on May 1, 2019 of $3 per share. Note: Enter debits before credits. Debit Credit Date May 01, 2019 General Journal Record entry Clear entry View general journal Journal entry worksheet Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $25,000 in 2019. Note: Enter debits before credits. Date December 31 2019 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2019 is $20 per share. Note: Enter debits before credits. Date December 31 2019 General Journal DebitCredit Record entry Clear entry View general journal Journal entry worksheet Record the receipt of cash dividends on May 1, 2020 of $3 per share. Note: Enter debits before credits. Date May 01, 2020 General Journal Debit Credi Record entry Clear entry View general journal Journal entry worksheet Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $25,000 in 2020. Note: Enter debits before credits. Date December 31 2020 General Journal Debit Credi Record entry Clear entry View general journal Journal entry worksheet Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2020 is $13 per share. Note: Enter debits before credits. Date December 31 2020 General Journal Debit Credit Record entry Clear entry View general journal
