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Alex
3 years ago
12

Base Electronics buys 5,000 shares of stock in Blue Mission Company for $10 per share on January 2 of the current year. Base own

s 34% of Blue Mission voting stock and intends to hold on to it for several years. On December 31, the end of the current year, Blue Mission had $100,000 in net income. What is the journal entry for Base Electronics to record their share of net income of Blue Mission Company?
Business
1 answer:
denpristay [2]3 years ago
7 0

Answer:

December 31

  • Dr Equity Investments account (Blue Mission) 34,000
  • Cr Revenue from Investments account 34,000

Explanation:

Since Base owns 34% of Blue, they should record 34% of Blue's net income = $100,000 x 34% = $34,000

December 31

Dr Equity Investments account (Blue Mission) 34,000

Cr Revenue from Investments account 34,000

Equity investments account is an asset account and it increases, therefore it should be debited.

Revenue from investments is a revenue account and all revenue is credited.

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Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships fo
bulgar [2K]

Answer:

The solution according to the given query is provided below.

Explanation:

The given question seems to be incomplete. The attachment of the complete query is provided below.

Now,

The additional investment will be:

= Ending \ owner's \ equity-Beginning \ owner's \ equity+Drawings-Net \ income

By putting the values, we get

= 40000-25000+37000-45000

= 7,000

Now,

The drawings will be:

= Ending \ owner's \ equity-Beginning \ owner's \ equity+Additional \ investment-Net \ income

By putting the values, we get

= 130000-80000-25000-40000

= -15,000

3 0
3 years ago
When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, whic
scZoUnD [109]

Answer:

a. Income from subsidiary will be lower by the amount of the ending inventory profit multiplied by the noncontolling interest percentage for downstream transfers.

Explanation:

When we transfer inventory from subsidiary to holding there will be some profit element included in cost. so when we consolidate the account of subsidiary to its holding at the time of reporting we should removed that unrealised profit included in the inventory.

6 0
3 years ago
Rent is an example of a(n) _____.
faust18 [17]

Answer:

a. fixed cost

Explanation:

Rent is always negotiated and stated in the tenancy or lease agreement. The lease or tenancy agreement is reviewed either annually or after every two years. The rent amounts remain the same until the time a tenancy agreement is reviewed.

Fixed costs are the business expenses that remain the same throughout the financial period.  A business has to incur fixed costs as long as the business is operational. The level of business activity or output does not affect fixed costs. Rent is a good example of fixed costs. A business has the pay the same amount of rent regardless of its production level.

6 0
3 years ago
Read 2 more answers
Greg is compiling a survey on consumer preferences. In order to achieve the most accurate snapshot of their likes and dislikes,
erik [133]

It is false that the allocation of approximately 20 minutes to answer the questionnaire will allow to achieve the most accurate snapshot of their likes and dislikes on the consumer preferences survey.

The method of data collection used in this case is known as Questionnaire.

  • The number of minute used by respondent to answer question on the questionnaire does not determine the accuracy of their inputs.

In conclusion, It is false that the allocation of approximately 20 minutes to answer the questionnaire will allow to achieve the most accurate snapshot of their likes and dislikes on the consumer preferences survey.

Read more about Respondent:

<em>brainly.com/question/18151532:</em>

<em />

8 0
2 years ago
Not to sure abt my ans.. i need some confirmation lol
koban [17]

Answer:

your answer is correct

Explanation:

4 0
3 years ago
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