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That is the only information given in the question On January 1, Year 4, Hidden Compary acquired 25,000 ordinary shares of Jovano Compary for $151,500
That is the only information given in the question
On January 1, Year 4, Hidden Compary acquired 25,000 ordinary shares of Jovano Compary for $151,500 when the shareholdess" equity of Jovano was as follows: In additon, Hidden purchased 20,000 shares in Jovano for $125,280 on January 1, Year 5 , and 10,000 shares in Jovano for $64,560 on January 1, Year 6. The following are the statements of tetained earnings for Jovano from Year 4 to Year 6 : Additionsi information Jovano's ordinary shares are publicly traded. The market value of the shares at the close on December 31 of one year was the same as the market value on January 1 of the next year Any acquisinion differential is allocated to customer lists with a useful iffe of three years on each of the three acquisition dates. Neither company has any customer lists recorded on their separate entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Requlred: (a) For each of Years 4 to 6, prepare the journal entries that Hidden would use to account for its investment in Jovano under the (if no entry is required for a transaction/event, select "No journal entry requlred" in the first account fleld. Round Intermediate calculations and flnal answers to nearest dollar amount.) (I) Cost method Journal entry worksheet Record the investment in shares of Jovano company in the books of Hidden Company. Notel Enter debits beroce credits. Journal entry worksheet Record the investment in shares of Jovano company in the books of Hidden Company, Note: Enter debits before credits. Journal entry worksheet flecord the investment in shares of Jovano company in the books of Hidden Company. Note: Enter debits before credits. (ii) Equity method Journal entry worksheet 4 Record the investment in shares of Jovano company in the books of Hidden Company. Noter Enter debits before credits. Journal entry worksheet Record the investment in shares of Jovano company in the books of Hidden Company, Notel Enter debits before credits: Record the investment in shares of Jovano company in the books of Hidden Company, Note: Enter debits before credits. (b) Calculate the balance in Hidden's investment in Jovano account at the end of Year 4,5 , and 6 under the (Round Intermedlate calculations and final answers to nearest dollar amount. Omit $ slgn in your response.) (i) Cost method (ii) Equity method (c) At the end of Year 6 , reconcile the balance in the investment account under the equity method to Jovano's shareholders' equity and the undepleted acquistion differential. (Round your answer to neorest dollar amount. Omlt $ sign In your response.) Reconciled balance in investment account (d) Calculate the following account balances for the Year 6 consolidated financial statements. (Round your answer to nearest dollor amount. Omit $ sign in your response.) On January 1, Year 4, Hidden Compary acquired 25,000 ordinary shares of Jovano Compary for $151,500 when the shareholdess" equity of Jovano was as follows: In additon, Hidden purchased 20,000 shares in Jovano for $125,280 on January 1, Year 5 , and 10,000 shares in Jovano for $64,560 on January 1, Year 6. The following are the statements of tetained earnings for Jovano from Year 4 to Year 6 : Additionsi information Jovano's ordinary shares are publicly traded. The market value of the shares at the close on December 31 of one year was the same as the market value on January 1 of the next year Any acquisinion differential is allocated to customer lists with a useful iffe of three years on each of the three acquisition dates. Neither company has any customer lists recorded on their separate entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Requlred: (a) For each of Years 4 to 6, prepare the journal entries that Hidden would use to account for its investment in Jovano under the (if no entry is required for a transaction/event, select "No journal entry requlred" in the first account fleld. Round Intermediate calculations and flnal answers to nearest dollar amount.) (I) Cost method Journal entry worksheet Record the investment in shares of Jovano company in the books of Hidden Company. Notel Enter debits beroce credits. Journal entry worksheet Record the investment in shares of Jovano company in the books of Hidden Company, Note: Enter debits before credits. Journal entry worksheet flecord the investment in shares of Jovano company in the books of Hidden Company. Note: Enter debits before credits. (ii) Equity method Journal entry worksheet 4 Record the investment in shares of Jovano company in the books of Hidden Company. Noter Enter debits before credits. Journal entry worksheet Record the investment in shares of Jovano company in the books of Hidden Company, Notel Enter debits before credits: Record the investment in shares of Jovano company in the books of Hidden Company, Note: Enter debits before credits. (b) Calculate the balance in Hidden's investment in Jovano account at the end of Year 4,5 , and 6 under the (Round Intermedlate calculations and final answers to nearest dollar amount. Omit $ slgn in your response.) (i) Cost method (ii) Equity method (c) At the end of Year 6 , reconcile the balance in the investment account under the equity method to Jovano's shareholders' equity and the undepleted acquistion differential. (Round your answer to neorest dollar amount. Omlt $ sign In your response.) Reconciled balance in investment account (d) Calculate the following account balances for the Year 6 consolidated financial statements. (Round your answer to nearest dollor amount. Omit $ sign in your response.) Step by Step Solution
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