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
nekit [7.7K]
2 years ago
11

On January 2, 20Y4, Whitworth Company acquired 40% of the

Business
1 answer:
Gelneren [198K]2 years ago
6 0

Answer:

Journal entries needed for:

a. Purchase of stock

b. Share of Aloof income

c. Dividend

d. Sale of Aloof company stock

a. Purchase of stock

Date                  Account Title                                   Debit                      Credit

Jan 2, 20Y4      Investment in Aloof company       $340,000

                          stock

                         Cash                                                                          $340,000

b. Share of Aloof income

Date                  Account Title                                   Debit                      Credit

Dec 31, 2024     Investment in Aloof company       $72,000

                          stock

                         Income of Aloof Company                                        $72,000

<u>Working:</u>

= 40% * 180,000 income

= $72,000

c. Dividend

Date                  Account Title                                   Debit                   Credit

Dec 31, 2024     Cash                                             $4,000

                         Investment in Aloof company                                  $4,000

                         stock

<u>Working:</u>

= 40% * 10,000 dividend

= $4,000

d. Sale of stock  

Date                  Account Title                                   Debit                      Credit

Dec 31, 2024    Cash                                             $405,000

                          Loss on sales of Aloof                 $3,000

                         company stock

                         Investment in Aloof company                                  $408,000

                         stock

<u>Working:</u>

Value of stock = Purchase price + share of Aloof income - Share of dividend

= 340,000 + 72,000 - 4,000

= $408,000

You might be interested in
Underground Clothing is a zero growth firm that has expected earnings before interest and taxes of $56,700, an unlevered cost of
koban [17]

Answer:

$230,825

Explanation:

VU = [$56,700 × (1 - .35)] / .162

VU= $56,700×0.65/.162

VU=36,855/.162

VU = $227,500

VL = $227,500 + .35($9,500)

VL= $227,500+$3,325

VL= $230,825

7 0
3 years ago
On January​ 1, 2019, Commercial Equipment Sales issued $ 29 comma 000 in bonds for $ 21 comma 700. These are sixminusyear bonds
maxonik [38]

Answer:

$2,058.33

Explanation:

bond's face value = $29,000

bond's market value = $21,700

interest rate = 10%

n = 6 x 2 coupons = 12

discount on bonds payable = $29,000 - $21,700 = $7,300

discount amortized per coupon payment = $7,300 / 12 = $608.33

total interest expense = ($29,000 x 10% x 1/2) + $608.33 = $1,450 + $608.33 = $2,058.33

the journal entry to record the coupon payment in June 30,2019:

Dr Interest expense 2,058.33

    Cr Cash 1,450

    Cr Discount on bonds payable 608.33

8 0
3 years ago
Maryland Incorporated produces toys. Total manufacturing costs are $ 370 comma 000 when 60 comma 000 toys are produced. Of this​
ludmilkaskok [199]

Answer:

The total production costs when 105 comma 000 toys are​ produced are $467,500

Explanation:

Manufacturing or production costs are the costs which is incurred to Manufacture / produce the products being sold.

Total Manufacturing Cost = $370,000

Variable cost = $130,000

Variable cost per unit = $130,000 / 60,000 = $2.17

Total Fixed Cost = Total Manufacturing cost - Variable cost

Total Fixed Cost = $370,000 - $130,000 = $240,000

Total Production cost = Variable cost + Fixed Cost

Total Production cost = ( 105,000 x 2.17 ) + $240,000

Total Production cost = $227,500 + $240,000 = $467,500

6 0
3 years ago
Which of the following describes a self-managed team?A. Workers are trained to do all or most of the jobs in the unit.B. Workers
Oksanka [162]

Answer:

A. Workers are trained to do all or most of the jobs in the unit

Explanation:

A self-managed team is a group of employees that's responsible and accountable for all or most aspects of producing a product or delivering a service. Traditional organizational structures assign tasks to employees depending on their specialist skills or the functional department within which they work

7 0
3 years ago
Plz plz follow me plz you all plz plz<br>​
77julia77 [94]

Answer:

..huh

Explanation:

?

6 0
3 years ago
Other questions:
  • Knowledge Check 01 On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent not
    13·1 answer
  • In the context of dollar-value LIFO, what is a LIFO layer?
    9·1 answer
  • How would you bookmark a web page using a GUI web browser?
    10·1 answer
  • The information listed below refers to the employees of Lemonica Company for the year ended December 31, 2016. The wages are sep
    15·1 answer
  • Nora owns a sock business. She has been selling mostly online to U.S. buyers, but now she wants to expand her sock business to o
    6·1 answer
  • Assume that you have been hired by a large international bank that is looking to develop a smartphone app to help college studen
    10·1 answer
  • 22)
    5·1 answer
  • 5 sentences on student wellness
    10·1 answer
  • A customer has a long margin account with no sma. if the market value of the securities rises, sma will increase by:________
    15·1 answer
  • ________ conservation involves the sampling, transferring, and storage of a species in a place other than the original location
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!