Question
[The following information applies to the questions displayed below.] Below are selected T-accounts for William Company. Investments in Affiliates 1/1 83,636 Purchase 12,852 Share of
[The following information applies to the questions displayed below.]
Below are selected T-accounts for William Company.
Investments in Affiliates | |||
1/1 | 83,636 | ||
Purchase | 12,852 | ||
Share of affiliate net income | ? | 10,109 | Share of affiliate dividends |
12/31 | 89,430 |
Equity in Affiliate Earnings | |||
0 | 1/1 | ||
? | Share of affiliate net income | ||
3,051 | 12/31 |
Required:
Complete the following journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. Purchased additional investments in affiliated companies for cash.
b. Received cash dividends on the investments.
c. At year-end, the investments in affiliates account had a fair value of $62,000; the affiliate also reported $5,950 in net income for the year. 1.Record purchase of additional investment in affiliates. 2.Record dividend income. 3.Record adjusting entry to account the effects of fair value at year end. 4. Record adjusting entry to account for net income.
d. What would be reported on the balance sheet related to the investments in affiliates on December 31?
e. What would be reported on the income statement for the year?
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