1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dominik [7]
3 years ago
5

On January 1, 2018, Jolley Corp. paid $250,000 for 25% of the voting common stock of Tige Co. On that date, the book value of Ti

ge was $850,000. A building with a carrying value of $160,000 was actually worth $220,000. The building had a remaining life of twenty years. Tige owned a trademark valued at $90,000 over cost that was to be amortized over 20 years. During 2018, Tige sold to Jolley inventory costing $60,000, at a markup of 50% on cost. At the end of the year, Jolley still owned some of these goods with an intra-entity selling price of $33,000. Tige reported net income of $200,000 during 2018. This amount included a extraordinary gain of $35,000. Tige paid dividends totaling $40,000.
Required:

Prepare all of Jolley's journal entries for 2013 in relation to Tige Co. Assume the equity method is appropriate for use.
Business
1 answer:
shusha [124]3 years ago
4 0

Answer:

            Dr. Investments in Associates 250,000

            Cr.            Cash                                 500,000

          Dr. Cash                                   10,000

          Cr.            Investments in Associates 10,000

          Dr. Investments in Associates 50,000

          Cr.     Investment revenue                    50,000

Explanation:

The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.

An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.

- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.

- Jolley records the net income from Tige Co. as an increase to its Investment account.

You might be interested in
In the short run, a decrease in the money supply causes output to? A. Increase B. Decrease C. Not change D. Increase or not chan
Amiraneli [1.4K]
The Answer will be: (A) Increase 

7 0
3 years ago
What is a step you can take to help a friend who is using drugs?
Elenna [48]
You can talk to them and let them know the consequences to hope for a change .
4 0
2 years ago
Do certain kinds of firms need to stress particular areas<br> of operations management? Explain.
sdas [7]

Answer:

Yes. Certain kinds of firms do need to stress particular areas  of operations management. Operations management is a vast area which consists of several departments such as supply chain management, logistic management, warehouse management, data management, inventory management and etc.

Companies, depending upon the kind of product and services they are supplying, need to figure out which department they are lacking in and should stress upon it.

For example shipment companies might need to focus on logistical affairs to strengthen their services.

7 0
3 years ago
In 1969, Malcolm bought a Pontiac Firebird for $2,500. If the price index was 36.7 in 1969 and the price index was 235 in 2013,
Ilya [14]

Answer:

Option (d) $16,008.17

Explanation:

Data provided in the question:

The price of the Firebird in 1969 = $2,500

Price index in 1969 = 36.7

Price index in 2013 = 235

Now,

The price of the Firebird in 2013 dollars will be

= [ Price index in 2013 ÷ Price index in 1969 ] × The price of the Firebird in 1969

= [ 235 ÷ 36.7 ] × $2,500

= 6.40327 × $2,500

= $16,008.17

Hence,

Option (d) $16,008.17

6 0
3 years ago
Veronique and lily each bought a piece of luggage that had the same price in different stores. the table below shows how they wi
myrzilka [38]

According to the information in the Graph Veronique made a better decision than Lily because the final cost of her purchase is lower including finance charges (option B)

<h3>What is a finance charge?</h3>

A finance charge is an economic term that refers to additional charges made by finance companies (such as banks) to a transaction we make, such as a purchase.

In the case of Veronique and Lilly, they both bought the same suitcase with different prices. However, the better financial decision was Veronique's because she paid less ($25) for the same bag including finance charges.

While Lilly, despite having fewer fees, will have to pay $10 more than Veronique.

Note: This question is incomplete because the image is missing. Here is the image.

Learn more about payment in: brainly.com/question/15138283

5 0
1 year ago
Other questions:
  • On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shi
    11·1 answer
  • An open market purchase by the fed has a tendency to:
    6·1 answer
  • When secondary market buyers and sellers of securities meet in one central location to conduct trades the market is called:
    14·1 answer
  • Cynthia works at an engineering firm in Arizona that installs transmission lines and works with the electrical systems of buildi
    10·1 answer
  • Both product development strategies and diversification strategies involve ________. A. leaving the current market selling a com
    12·1 answer
  • Soltura Products Inc. has a training program for customer service representatives that tests trainees on their knowledge of comp
    5·1 answer
  • Which of the following is most likely considered a weakness of present value models?
    15·1 answer
  • Match the following three types of decision making with their corresponding attributes. A. Deliberate, rational, sequential B. E
    11·1 answer
  • Scarcity implies that a customer wants things from a business A. many B. few C. specific D. quality​
    13·1 answer
  • Coronado Company reported net income of $69000 for the year. During the year, accounts receivable decreased by $8100, accounts p
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!