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
Tema [17]
3 years ago
14

Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 108,000 shares of Silva Company directly fro

m one of the founders for a price of $48 per share. Silva has 300,000 shares outstanding including the Daniels shares. On July 2, Year 1, Silva paid $292,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $971,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva
a. Provide the Ferguson Company journal entries for the transactions Involving its Investment In Sllva Company durlng Year 1 Year 1 Jan. 4 Year 1 July 2 Year 1 Dec. 31
b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock
Business
1 answer:
r-ruslan [8.4K]3 years ago
7 0

Answer:

a)

January 4, year 1, investment in Silva Company (36% of outstanding stocks)

Dr Investment in Silva Company 5,184,000

    Cr Cash 5,184,000

July 2, year 1, distributed dividends ( $292,000 x 36%)

Dr Cash 104,400

    Cr Investment in Silva Company 104,400

December 31, year 1, net income reported by Silva Company ($971,000 x 36%)

Dr Investment in Silva Company 349,560

    Cr Revenue from investment in Silva Company 349,560

b)

Balance of Investment in Silva Company = $5,184,000 - $104,400 + $349,560 = $5,429,160

Explanation:

Since Ferguson exercises significant influence over Silva Company, they must record the investment using the equity method.

You might be interested in
Currently, you own 5.4 percent of the outstanding stock of Keiffer Industries. The firm has decided to issue additional shares o
taurus [48]

We will be participating in (A) rights offer if you opt to purchase the shares you have been offered.

<h3>What is Rights Offering?</h3>
  • A rights offering (rights issue) is a set of rights granted to existing shareholders to purchase more stock shares in proportion to their existing holdings, known as subscription warrants.
  • These are considered a sort of option since they enable stockholders of a firm the right, but not the responsibility, to purchase more shares in the company.
  • The subscription price at which each share may be purchased in a rights offering is often discounted relative to the current market price.
  • Rights are frequently transferrable, giving the possessor the ability to sell them on the open market.
  • Each shareholder in a rights offering receives the opportunity to purchase a pro-rata allotment of extra shares at a certain price and within a specific time frame (usually 16 to 30 days).

Therefore, we will be participating in (A) rights offer if you opt to purchase the shares you have been offered.

Know more about Rights Offering here:

brainly.com/question/17232098

#SPJ4

The complete question is given below:

Currently, you own 5.4 percent of the outstanding stock of Keiffer Industries. The firm has decided to issue additional shares of stock and has given you the first option to purchase 5.4 percent of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?

A. Rights offer

B. Red herring offer

C. Private placement

D. IPO

E. General cash offer

3 0
1 year ago
About how many containers will be recycled if 125 people attend a concert?<br><br>it math
Natalija [7]
Over 300 since a lot of people tend to use more than one
<span />
8 0
3 years ago
One year ago, JK Mfg. deposited $12,000 in an investment account for the purpose of buying new equipment four years from today.
Lyrx [107]

Answer:

Total FV= $46,008.31

Explanation:

Giving the following information:

Deposit 1= $12,000

Deposit 2= $15,000

Deposit 3= $10,000

Interest rate= 0.055

<u>To calculate the future value, we need to use the following formula on each deposit:</u>

FV= PV*(1+i)^n

FV1= 12,000*(1.055^5)= 15,683.53

FV2= 15,000*(1.055^4)= 18,582.37

FV3= 10,000*(1.055^3)= 11,742.41

Total FV= $46,008.31

4 0
3 years ago
Name 5 offices or department in a business ​
Verizon [17]

Answer:

human resource , production office , finance & marketing , & purchasing

Explanation:

There are five main functional areas of management viz., human resource, production office, finance and marketingthe emphasis is given on achieving the target in minimum time. By the nature, only one thing time is allotted equally to every creature as 24 hours in a day. 

7 0
2 years ago
Match each term to its definition. Part Aa. surplus b. debt c. interest d. deficit Part B1. the total of all accumulated and unp
yanalaym [24]

Answer:

The answers are as follows;

1. the total of all accumulated and unpaid deficits (b. Debt)

2. a situation in which outlays exceed revenue (d. Deficit)

3. a situation in which revenue exceeds outlays (a. Surplus)

4. the fee that borrowers pay to debt holders (c. Interest)

Explanation:

4 0
3 years ago
Other questions:
  • Before the Internet, for many people the idea of purchasing many goods without physically seeing the goods or the seller would h
    8·2 answers
  • What are corporate travel managers how do they compare to travel agents
    6·1 answer
  • Juggernaut, Inc. makes large-size commercial appliances such as freezers and refrigerators. These items are bulky and the firms
    7·1 answer
  • Employees who are willing to step forward, usually at great personal sacrifice, to reveal wrongdoing of the part of their employ
    8·1 answer
  • Organic Eats provides an organic, vegan menu. Since there are very few restaurants that offer the same unique services, customer
    11·1 answer
  • Sabrina’s father is the limo driver to the President and CEO of RSG, an investment bank in New York. Sabrina buys RSG stock when
    12·1 answer
  • When Farmer Hoglund applies N pounds of fertilizer per acre, the marginal product of fertilizer is 1 -N/200 bushels of corn. If
    6·2 answers
  • Barcain Credit Corp. wants to earn an effective annual return (EAR) on its consumer loans of 16 percent per year. If the bank us
    5·2 answers
  • Pencils and pens _____ descent notes, but a computer and calculator _____ needed to process data.
    10·1 answer
  • if the fed lowers the discount rate, the money supply multiple choice question. does not change increases decreases
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!