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
Travka [436]
3 years ago
9

Windsor Locomotive Corporation purchased for $550,000 a 40% interest in Lopez Railways, Inc. This investment enables Windsor Loc

omotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $149,000 and paid dividends of $27,000. Prepare Windsor Locomotive’s journal entries related to this investment.
Business
1 answer:
Vanyuwa [196]3 years ago
4 0

Answer:

Journal Entries

Dr. Investment in Lopez Railways Inc.  $600,000  

Cr. Cash                                     $600,000

Dr. Investment in Lopez Railways Inc                   $59,600

Cr. Income of Investment in Lopez Railways Inc $59,600

Dr. Cash                                                 $10,800

Cr. Investment in Lopez Railways Inc  $10,800

Explanation:

As Windsor Locomotive Corporation has purchased 40% interest in Lopez Railway Inc.Lopez Inc. is classified as the associate company of Windsor Corp.

Share in net Income = $149,000 x 40% = $59,600

Share In Dividend = $27,000 x 40% = $10,800

You might be interested in
Garrison Shops had a SUTA tax rate of 3.7%. The state's taxable limit was $8,000 of each employee's earnings. For the year, Garr
Ierofanga [76]

Answer:

Detailed solution is given below:

7 0
3 years ago
TYR just announced yesterday that its fourth-quarter earnings will be 35% lower than last year's fourth quarter. You observe tha
makkiz [27]

Answer: Investors expected the earnings increase to be smaller than what was actually announced.

Explanation:

Abnormal return on an asset such as stock refers to the difference between actual returns and expected returns. As such, if it is positive, that would mean that the actual returns are/ will be higher than the expected/anticipated returns.

TYR had an abnormal return of 3.7% which would mean that the the 35% lower fourth-quarter earnings was higher than investors expected from TYR.

4 0
3 years ago
The Water Sports Company soon will be producing and marketing a new model line of motor boats. The production manager, Michael J
Licemer1 [7]

Answer:

Explanation:

X - number of units sold

Total cost for production = 1,500,000 + 1600X

Total cost for purchasing = 2000X

a.  For 4000 units sold

Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000

Total cost for purchasing = 2000* 4000 =  $8,000,000

In this case producing is cheaper. Therefore, it is better to produce

b. Y - break-even point

Then :  1,500,000 + 1600 * Y = 2000* Y

So 1,500,000 = 400 Y

Y = 3750

At №of units less than 3750 purchasing will be the better option

And above 3750 producing will be the better option

4 0
3 years ago
Approximately what percentage of the u.s. public debt is held by foreign individuals and institutions (2015)?
denpristay [2]

34% as of 2015, $6.156 trillion

8 0
3 years ago
Mnemonics are a tool to aid which of the following?
scoray [572]

Answer:

B. Memory

Explanation:

Mnemonics are a tool to aid memory.

5 0
3 years ago
Other questions:
  • Dexter decides to buy a new smartphone and offset the cost by selling his old phone to one of his friends. His friend has no mon
    6·1 answer
  • Understanding the link between education and your desierd career is an integral part of your career
    10·1 answer
  • Assets are equal to
    9·2 answers
  • To buy your first home, you take out a 15 year (fully amortizing) mortgage for $400,000 which requires equal yearly payments. Th
    8·1 answer
  • A company’s flexible budget for 16,000 units of production showed sales, $48,000; variable costs, $24,000; and fixed costs, $17,
    15·1 answer
  • Where can I find a copy of my residence weekend attendance records? MyUC / UC One My advisor My UC Email All of the above
    5·1 answer
  • If the price elasticity of supply is 0.6, and a price increase led to a 3.7 percent increase in quantity supplied, then the pric
    12·1 answer
  • Financial information for Forever 18 includes the following selected data: ($ in millions except share data) 2021 2020 Net incom
    12·1 answer
  • You are looking for your first credit card. You plan to use this credit card only for emergencies and to pay the credit card bal
    5·1 answer
  • Adjusting entries are made __________ of the accounting period to distribute revenue and expenses to the period in which they ar
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!