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
ollegr [7]
3 years ago
9

A parent company received dividends in excess of the parent company’s share of the subsidiary’s earnings subsequent to the date

of the investment. How will the parent company’s investment account be affected by those dividends under each of the following accounting methods?
Business
1 answer:
Zarrin [17]3 years ago
5 0

Answer: Regardless of the method that is applied, the investment account of the parent company will be reduced by the collection of dividends. In other words, if the cost method is applied, the investment account of the parent company will be reduced and if the Partial Equity Method is applied, the investment account of the parent company will be reduced.

You might be interested in
The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credit
Umnica [9.8K]

Answer:

<u>Blueboy Cheese Corporation </u>

<u>Income Statement</u>

<u>December 31, 2021</u>

<u>Account Title                                  Debits                      Credits </u>

Sales revenue                                                                     680,000

Less Cost of goods sold               408,000

Gross Profit                                                                          272,000

less

Salaries expense                       108,800

Rent expense                           18,000

Depreciation expense             53,000

Interest expense                        3,900

Advertising expense                  3,600

<u>Un adjusted Profit                                                              84,700</u>

<u> </u><u>Adjusted Profit                                                                  82,900     </u>                            

<u>Blueboy Cheese Corporation </u>

<u>Balance  Sheet</u>

<u>December 31, 2021</u>

<u>Account Title                                  Debits                      Credits </u>

Cash                                               51,900

Accounts receivable                    290,000                                

Inventory                                      43,000

Office equipment                         308,000

                                       

Accounts payable                                                             56,000

Notes payable (due in six months)                                    39,000

Common stock                                                                    400,000

Retained earnings                115,000 + 82,900=              197,900

<u>                                                                                                               </u>

<u>Total                                            $ 692,900                         692,900</u>

<u />

Closing Entries

Dec 31            Sales Revenue             $680,000 Dr

                             Income Summary                    $680,000 Cr

The first closing entry transfers credit balances in revenue ( and gain ) accounts to the income summary accounts.

Dec 31          Income Summary          $ 187,300 Dr

                               Salaries expense                       108,800 Cr

                                Rent expense                           18,000 Cr

                                 Depreciation expense             53,000 Cr

                                     Interest expense                        3,900 Cr

                                       Advertising expense                  3,600 Cr

The second closing entry transfers debit balances in expense ( and loss) to the income summary accounts.

Dec 31                    Income Summary            $ 82,900

                                    Retained Earnings Accounts            $ 82,900

The third entry transfers the balance of income summary account to the owner's capital account or retained earnings account.

5 0
2 years ago
HELPPPPP
Rashid [163]

Answer:

Yes, that sounds about right

Explanation:

Till the age of retirement, a person's mostly expenses are finished, like growing his children, educate them, get them married, etc. He is left with only few expenses like running the house or meet his personal expenses. So the Social Security and some regular savings would be enough for him to lead a respectable life in the society. Also, his children are settled enough to fulfill his expenses at this point of his life. So there is no necessity to invest in a retirement plan that pays you 80% of your regular income. Social security and savings would be enough for the person.

4 0
2 years ago
What are the two basic parts of a management plan?
weqwewe [10]

Answer: banks statements and break down of property structures.

6 0
3 years ago
A(n) ____ activity is one that happens on a regular basis.
astra-53 [7]
A recurring activity is one that happens on a regular basis. These activities usually are very similar and refer to the same thing and objective. Recurring activities that an organization carries out in order to enhance its efficiency and its ability to meet requirements can lead to c<span>ontinual improvement.
</span>

6 0
3 years ago
Read 2 more answers
A process in which different individuals and units perform different tasks is known as:
elena-s [515]
The process is a multiplicative inverse of which people seem to check
4 0
3 years ago
Other questions:
  • Thomas Marley Fitness Gym has $ 700 comma 000 of 20​-year bonds payable outstanding. These bonds had a discount of $ 77 comma 00
    7·1 answer
  • Three companies well known for their strong csr orientations are:
    8·1 answer
  • Which of these is NOT considered a critical contextual factor in project management? A. Organizational culture B. Organizational
    13·1 answer
  • Rottino Company purchased a new machine on October 1, 2020, at a cost of $150,000. The company estimated that the machine will h
    5·1 answer
  • What is brad's opportunity cost of producing one pound of beef?
    6·1 answer
  • A ________ is made up of a company, its suppliers, its distributors, and its customers who partner with each other to improve th
    9·2 answers
  • Stark Company's most recent balance sheet reported total assets of $1.82 million, total liabilities of $0.84 million, and total
    5·1 answer
  • ​The manager of an ice-cream parlor decides to introduce a new ice-cream flavor in his Dallas, TX based restaurants to compare t
    11·1 answer
  • Adams, Inc., is a book publisher that reissues old titles. The company offers these books with either a standard machine-glued h
    7·1 answer
  • A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $13, plus a fixed charge of $96
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!