Question

janus Corp. acquired a 30% interest in west Co. on December 31, 2020, for $500,000. On...

janus Corp. acquired a 30% interest in west Co. on December 31, 2020, for $500,000. On September 15, 2021, west declared and paid $220,000 in cash dividends. west reported net income for the year ended December 31, 2021, of $480,000. Prepare the journal entries for 2021 that janus would make to account for its investment in west Corp.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ON JANUARY 2, 2020, RAMS CORP. ACQUIRED 30% OF THE OUTSTANDING COMMON STOCK OF COLTS CO....
ON JANUARY 2, 2020, RAMS CORP. ACQUIRED 30% OF THE OUTSTANDING COMMON STOCK OF COLTS CO. FOR $2,000,000. THIS ACQUISITION GAVE THE RAMS THE ABILITY TO EXERCISE SIGNIFICANT INFLUENCE OVER THE INVESTEE. THE 100% BOOK VALUE OF THE ACQUIRED SHARES WAS $4,500,000. ANY EXCESS COST OVER THE UNDERLYING BOOK VALUE WAS ASSIGNED TO A PATENT THAT WAS UNDERVALUED ON THE COLT'S BALANCE SHEET. THIS PATENT HAS A REMAINING USEFUL LIFE OF TEN YEARS. FOR THE YEAR ENDED DECEMBER 31, 2020,...
On December 31, 2019, Pluto Corp. acquired $500,000 of 8% bonds of Saturn Ltd., at a...
On December 31, 2019, Pluto Corp. acquired $500,000 of 8% bonds of Saturn Ltd., at a price to yield 6%. The bonds mature on December 31, 2024, with interest payable each June 30 and December 31. Pluto follows IFRS and uses the FVNI model for this investment. On December 31, 2020, the bonds are selling at a price to yield 5.6%. Required Prepare the following four journal entries for Pluto: Acquisition of bonds on December 31, 2019. Receipt of interest...
On January 1, 2020, Sheridan Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2020, Sheridan Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,360,000. At the time, the book value and the fair value of John’s net assets were $13,400,000. On July 1, 2021, Sheridan paid $3,350,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Sheridan owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess...
On January 1, 2020, Sweet Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2020, Sweet Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,300,000. At the time, the book value and the fair value of John’s net assets were $12,900,000. On July 1, 2021, Sweet paid $2,890,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Sweet owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess...
On January 1, 2020, Bridgeport Co. purchased 24,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2020, Bridgeport Co. purchased 24,000 shares (a 10% interest) in Elton John Corp. for $1,450,000. At the time, the book value and the fair value of John’s net assets were $12,000,000. On July 1, 2021, Bridgeport paid $2,740,000 for 48,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Bridgeport owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess...
On January 1, 2020, Swifty Co. purchased 25,000 shares (a 10% interest) in Elton John Corp....
On January 1, 2020, Swifty Co. purchased 25,000 shares (a 10% interest) in Elton John Corp. for $1,270,000. At the time, the book value and the fair value of John’s net assets were $12,800,000. On July 1, 2021, Swifty paid $3,040,000 for 50,000 additional shares of John common stock, which represented a 20% investment in John. As a result of this transaction, Swifty owns 30% of John and can exercise significant influence over John’s operating and financial policies. (Any excess...
Vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020,...
Vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021,...
On May 1, 2020, Rennet acquired 40% of Zanzibar Corp and is the largest shareholder of...
On May 1, 2020, Rennet acquired 40% of Zanzibar Corp and is the largest shareholder of Zanzibar Corporation. During 2020, Zanzibar reported net income of $60,000. On June 1, 2020, Zanzibar Corp declared and paid $5,000 in dividends. At December 31, 2020, the market value of the stock was $10,000 greater than the purchase price. In 2020, there was no beginning balance in the SFVA account. Rennet mistakenly recorded the transactions using the fair market value method, instead of using...
Treasure Co. acquired 35% of the 3,000,000 shares of common stock of Plush Co. at a...
Treasure Co. acquired 35% of the 3,000,000 shares of common stock of Plush Co. at a cost of $7.50 per share on January 1, 2014. Plush co. declared and paid a $0.3 cash dividend per share and reported net profit of $315,000 for the year. On December 31, 2014, Treasure sold these shares at a market price of $8.70 per share. Required: Prepare all appropriate journal entries related to the investment during 2014.
At December 31, 2021 and 2020, P Co. had 50,000 shares of common stock and 5,000...
At December 31, 2021 and 2020, P Co. had 50,000 shares of common stock and 5,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $500,000. For 2021, basic earnings per common share amounted to: Group of answer choices $9.50. $5.00. $9.00. $10.00.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT