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Alexus [3.1K]
3 years ago
9

As a long-term investment, Painters' Equipment Company purchased 25% of AMC Supplies Inc.'s 490,000 shares for $570,000 at the b

eginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $340,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $604,000.Required:a) Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.Event 1 Record the purchase of AMC Supplies shares for $570,000 as a long-term investment.Event 2 Record Painters' Equipment's share of AMC Supplies' $340,000 net income.Event 3 Record the cash dividend of 20 cents per share.Event 4 Record any necessary year-end adjusting journal entry when the fair value of the shares held are $604,000 at year-end.
Business
1 answer:
shutvik [7]3 years ago
3 0

Answer:

Event 1: To record the purchase of AMC Supplies shares for $570,000 as a long-term investment:

Dr Investment on AMC supplies shares                 570,000

Cr Cash                                                                     570,000

Event 2: To record Painters' Equipment's share of AMC Supplies' $340,000 net income: As no significant influence was acquired, no entry needed for this event.

Event 3: To record the cash dividend of 20 cents per share:

Dr Cash                       24,500

Cr Investment on AMC supplies shares       24,500

( to record dividend from AMC shares calculated as number of share owned x dividend paid per share = (25% x 490,000) x 0.2 = $24,500)

Event 4: To record any necessary year-end adjusting journal entry when the fair value of the shares held are $604,000 at year-end.

Dr Investment on AMC supplies shares              34,000

Cr Unrealized gain on investment                      34,000

(calculated as $604,000 - $570,000 =$34,000)

Explanation:

Explanations are given under each event.

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Which one of the following is an example of cash flows from operating activities? Multiple Choice Proceeds from collecting the p
Dahasolnce [82]

Answer:

Receipts of cash from sales.

Explanation:

Operating activities in the cash flow statement refers to that statement in which the cash sales, cash payments are recorded. These transactions are recorded when the company use the direct method and for an indirect method the other things should be considered as changes in working capital, depreciation expenses, profit and loss on sales of fixed assets, etc

Therefore the last option is correct

7 0
3 years ago
Which of the following might be a job or task of an it worker who manages networks
MrRa [10]

Sets up a LAN for the office APEX VERIFIED

3 0
3 years ago
Wickland Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000.
Ostrovityanka [42]

Answer:

Depreciation Expense = $16900

Explanation:

Using the units of production method. I will get the value of depreciation expense for the year 2. The units of production method calculate the value of depreciation using the formula is given below.

Depreciation expense = (Cost - Salvage value) / Total Units of Products x Units of production in second year.

Depreciation expense = ($87000 - $7000) / 400000 x 84500 = $16900

Wickland company will charge depreciation expense of $16900 using the Units of production method as during the second year of Wickland company depreciation expense is $16900.

7 0
3 years ago
Activity-Based Costing: Factory Overhead Costs The total factory overhead for Bardot Marine Company is budgeted for the year at
Butoxors [25]

Answer:

The question is not incomplete as it is missing the requirement below:

A) The activity rates for each activity and

B) The activity-based factory overhead per unit for each product.

Fabrication activity rate=$68 /dlh

Assembly activity rate =$35 /dlh

Setup activity rate =$390/setup

inspection activity rate=$90/inspection

Speed boat activity based factory overhead=$387000

Bass boat activity based factory overhead=$213000

Explanation:

Fabrication activity rate=$204,000/(2000+1000)=$68 /dlh

Assembly activity rate =$105000/(1000+2000)=$35 /dlh

Setup activity rate =$156000/(300+100)=$390/setup

inspection activity rate=$135000/(1100+400)=$90/inspection

Speed boat total overhead is computed thus:

fabrication  $68*2000                     136000

Assembly  $35*1000                          35000

setup $390*300                                 117000

inspection $90*1100                           <u>99000 </u>

Total                                                      387000

bass boat total overhead is computed thus:

fabrication  $68*1000                     68000  

Assembly  $35*2000                       70000

setup $390*100                               39000

inspection $90*400                          <u>36000  </u>

Total                                                   213000

8 0
3 years ago
Maribel is putting the finishing touches on her slide presentation. She wants
AleksAgata [21]

Answer:

B

Explanation:

when she is talking over the slides, some people are not good multi-taskers and want to listen to the more interesting thing, which is the audio.

4 0
3 years ago
Read 2 more answers
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