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
WARRIOR [948]
3 years ago
8

On January 2, Yorkshire Company acquired 40% of the outstanding stock of Fain Company for $600,000. For the year ended December

31, Fain Company earned income of $140,000 and paid dividends of $50,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.
Business
1 answer:
mr Goodwill [35]3 years ago
3 0

Answer: Please refer to Explanation

Explanation:

We shall do the accounting entries as follows,

Purchase of the stock

January 2

DR Investment in Fain Stock $600,000

CR Cash $600,000

The share of Fain income

December 31

DR Investment in Fain Stock $56,000

CR Revenue from Investment (40% * $140,000 income) $56,000

The dividends received from Fain Company.

December 31

DR Cash (40% * $50,000 dividend payout) $20,000

CR Investment in Fain Stock $20,000

If you need any clarification do comment.

Cheers.

You might be interested in
Which of the following is an example of a content management system (CMS)?
Grace [21]

Some examples of a content management system (CMS) are:

  • WordPress,
  • Joomla,
  • Drupal,  
  • Wix,
  • Ghost.

<h3>What is content management system?</h3>

This refers to the software that helps users create, manage, and modify content on a website without having to code.

Hence, we can see that Some examples of a content management system (CMS) are:

  • WordPress,
  • Joomla,
  • Drupal,  
  • Wix,
  • Ghost.

Read more about content management system here:

brainly.com/question/15077884

#SPJ1

4 0
1 year ago
Which problem is more likely to affect a partnership than a corporation?
dimulka [17.4K]

Answer:

D

Explanation:

Partnerships often leave the owners liable to damages. As they aren’t difficult to set up in comparison, the answer most likely isn’t A. B also seems unlikely, as partnerships are often on a smaller scale. C doesn’t seem to apply.

4 0
3 years ago
Read 2 more answers
"Under the California Insurance Code, there are no _______ for life or health insurance in California."
gizmo_the_mogwai [7]

Answer: Broker

Explanation: An insurance broker is a person or group of persons who have the legal authority to trade or manage insurance policy of his or her clients. A broker advices the policy holder on necessary actions to take.

Under the California code insurance brokers are not permitted for life and health insurance policy.

An insurance broker is acting as a third party to his or her clients.

6 0
3 years ago
Answer these questions picture above.<br><br>​
ExtremeBDS [4]

1 increasing audience

2 payment methods and or growing page

3 yes help others and myself

4 insta due to its growing capacity

7 0
2 years ago
uppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A thr
Ivenika [448]

Answer:

WACC for A: 9.05%

WACC for B: 9.50%

WACC for C: 12.20%

WACC for D: 12.65%

Explanation:

WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)

Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%

Thus WACC for a division will be equal:  3% + 50% x ( 4% + beta of each Division x 9%).

Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.

7 0
3 years ago
Other questions:
  • Harvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment wh
    12·1 answer
  • Lydia works at a medical facility in which all employees are required to wear white shoes. lydia does not agree with this rule.
    11·1 answer
  • Courses of action such as halting the market research project, making responses anonymous, and instituting training on the ama c
    9·1 answer
  • Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives.
    7·1 answer
  • Because you understand the law of supply, you can deduce that the correct graphical representation of the supply for CDs must be
    5·1 answer
  • And construction Falls to a lower level a major cause of fatalities true or false
    15·1 answer
  • PLEASE ANSWER THESE IT WOULD BE A HUGE HELP
    8·2 answers
  • Though managers commonly deal with negative individual behaviors, which behavior is more rare and more serious to address
    10·1 answer
  • The steady growth line best supports which conclusion about the economy
    13·1 answer
  • At the __________ stage of transforming raw materials into finished goods, managers typically use __________ control methods to
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!