Question

thompson owns 100% of Rollins and at 12/31/2012. its investment in Rollins account stands at 10000000....

thompson owns 100% of Rollins and at 12/31/2012. its investment in Rollins account stands at 10000000. on that date thompson sells 20% of its ownership for2500000 cash prepare the j/e to be recorded by thompson on 12/31/2012?

Homework Answers

Answer #1

Please find the below table showing Journal entry on 31st dec. 2012

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
thompson owns 100% of Rollins and at 12/31/2012. its investment in Rollins account stands at 10000000....
thompson owns 100% of Rollins and at 12/31/2012. its investment in Rollins account stands at 10000000. on that date thompson sells 20% of its ownership for2500000 cash prepare the j/e to be recorded by thompson on 12/31/2012? b. Same facts as above, except the sales price is $1,000,000 cash. Prepare the journal entry to be recorded by Thompson on December 31,2012. Answer b please.
Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands...
Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at $6,000,000. On that date Big sells half its ownership for $4,000,000 cash. a. Prepare the journal entry to be recorded by Big on December 31, 2012. b. Same facts as above, except the sales price is $2,500,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012.
Roberts owns 50% of Smith at has a balance in the investment account of $200,000 at...
Roberts owns 50% of Smith at has a balance in the investment account of $200,000 at December 31, 2015. On January 1, 2016, Roberts purchases an additional 10% ownership in Smith for $70,000. Roberts will Dr. Investment in Smith for $70,000 and credit Cash for $70,000. What additional entry will Roberts be required to make to reflect the increase in ownership?
1. Wang owns 30% of Chen and at December 31, 2015 the balance in Wang's investment...
1. Wang owns 30% of Chen and at December 31, 2015 the balance in Wang's investment account equals $400,000. On January 1, 2016 Wang purchases an additional 40% ownership in Chen for $600,000 bringing Wang's ownership up to 70%. Wang will Dr. Investment in Chen for $600,000 and credit cash for $600,000. What additional entry will Wang be required to make to reflect the increase in ownership.
Hand owns 90% of Finger and uses the equity method to account for its investment in...
Hand owns 90% of Finger and uses the equity method to account for its investment in Finger. In 2020, Finger sells inventory (cost of $60,000) to Hand for $80,000. Hand remains with 30% of this inventory at the end of 2020. What is the consolidation worksheet entry required to be made at the end of 2020 for the unrealized gain ?
On 1/1/20, Fluffy Inc. owns 100,000 (25%) of Shadow Inc. and the balance of the investment...
On 1/1/20, Fluffy Inc. owns 100,000 (25%) of Shadow Inc. and the balance of the investment account on Fluffy’s books is $250,000. On October 1st, 2020, Fluffy sells 20,000 shares to Chance for $5 per share. After the sale, Fluffy’s ownership drops to 20%, but Fluffy can still significantly influence Shadow Inc. During 2020, Shadow reports $480,000 of net income, earned equally throughout the year. Annual amortization associated with the investment is $36,000. In November 2020, Shadow sold goods costing...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton. On January 1, 2011, Hamilton sold $1,200,000 in 10-year bonds to the public at 105. The bonds had a cash interest rate of 7...
On December 31, 2006, Giant-Petrel Corporation's Investment in Penguin Corporation account had a balance of $525,000....
On December 31, 2006, Giant-Petrel Corporation's Investment in Penguin Corporation account had a balance of $525,000. The balance consisted of 80% of Penguin's $600,000 stockholders' equity on that date and $45,000 of goodwill. On January 2, 2007, Penguin increased its outstanding common stock from 15,000 to 18,000 shares. Question: Assume instead that Penguin sold the additional 3,000 shares to outside interests for $150,000 on January 2, 2007. Giant-Petrel's percentage ownership immediately after the sale of stock would be: a. 66-2/3%...
California Designs is diversifying its investment portfolio by making a small investment (less than 5%) in...
California Designs is diversifying its investment portfolio by making a small investment (less than 5%) in the common stock of Oregon Outfitters. California Designs engages in the following transactions relating to its investment: January 1  Purchases 1,200 shares of Oregon Outfitters common stock for $25 per share. The investment is properly classified as an available-for-sale security. July 12 Sells 350 shares of Oregon Outfitters stock for $23 per share. September 30 Receives a cash dividend of $1 per share. December 31...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired...
Cairns owns 70 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other allocation was recorded in connection with the acquisition. Cairns uses the equity method in its internal records to account for its investment in Hamilton. On January 1, 2014, Hamilton sold $1,100,000 in 10-year bonds to the public at 110. The bonds had a cash interest rate of 8...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT