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sleet_krkn [62]
2 years ago
11

Jose's Pizza Parlor, Inc., recently acquired controlling interest in Mariana's Pizza Parlor, Inc. This acquisition is called:

Business
1 answer:
deff fn [24]2 years ago
4 0
(D) Horizontal merge
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Rowan Co. purchases 200 common shares (40%) of JBI Corp. as a long-term investment for $600,000 cash on July 1. JBI Corp. paid $
aleksley [76]

Answer:

1. Jul-01

Dr Investment in JBI Corp $ 600,000

Cr Cash $ 600,000

2. Nov-01

Dr Cash $ 5,000

Cr Investment in JBI Corp $ 5,000

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Dr Investment in JBI Corp $ 100,000

Cr Investment revenue $ 100,000

Explanation:

1. Preparation of Rowan's entries to record the purchase of JBI shares

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Dr Investment in JBI Corp $ 600,000

Cr Cash $ 600,000

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3. Preparation of Rowan's entries to record the December 31 year-end adjustment for its share of JBI net income

Dec-31

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Cr Investment revenue $ 100,000

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