The beginning balance sheet of Landeau Corporation included the following: Equity-method Investment in NEW Software ........................... $614,000
Question:
Equity-method Investment in NEW Software ........................... $614,000
Landeau Corporation completed the following investment transactions during the year:
Mar 16 .......... Purchased 2,200 shares of Hubbardston, Inc., common stock as a long-term available-for-sale investment, paying $12.00 per share.
May 21 ......Received cash dividend of $2.50 per share on the Hubbardston investment.
Aug 17......Received cash dividend of $85,000 from NEW Software. Dec 31 Received annual reports from NEW Software; net income for the year was $550,000. Of this amount, Landeau's proportion is 26%.
At year-end, the fair values of Landeau Corporation's investments are as follows: Hubbardston, $26,600; NEW, $745,000?
Requirements
1. Record the transactions in the journal of Landeau Corporation?
2. Post entries to the T-account for Equity-method Investment in NEW Software, and determine its balance at December 31?
3. Show how to report the Investment in Available-for-Sale Securities and the Equity-method Investment in NEW Software accounts on Landeau Corporation's balance sheet at December 31?
Common Stock
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A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Req 1 JOURNAL DATE ACCOUNT TITLES AND EXPLANATION DEBIT CREDIT Mar 16 Investment in AFSS 2200 ...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
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