Heidi Design acquired 20- of the outstanding common stock of Quigly Co (1).docx

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Heidi Design acquired 20% of the outstanding common stock of Quigly Company on January 1, 2014, by paying $800,000 for the 30,000 shares. Quigly declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quigly reported net income of $320,000 for the year. At December 31, 2014, the market price of Quigly common stock was $34 per share. Instructions (b) Prepare the journal entries for Heidi Design for 2014, assuming Heidi Design can exercise significant influence over Quigly. Use equity method. HINT: Revenue from stock investments $64,000. Solution the revenue from dividend is =30,000X0.3= $9000 and 4 times paid, so total dividend= 9000*4= $36,000 and the net income at the date 31,Dec 2014 is $320,000. if you divide it per share, it will be: total shares are= 150,000 (i.e. when 20% shares are 30,000 in number, total shares are 150,000) 320,000/150,000= $2.133 and total apreciation can be $64,000 (2.133*30,000) .

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Heidi Design acquired 20- of the outstanding common stock of Quigly Co (1).docx

Heidi Design acquired 20% of the outstanding common stock of Quigly Company on January 1, 2014, by paying $800,000 for the 30,000 shares. Quigly declared and paid $0.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quigly reported net income of $320,000 for the year. At December 31, 2014, the market price of Quigly common stock was $34 per share. Instructions (a) Prepare the journal entries for Heidi Design for 2014 assuming Heidi Design cannot exercise significant influence over Quigly. (Use the cost method and assume that Quigly common stock should be classified as a trading security). HINT: Total divident revenue $36,000 Solution Declaration of Dividend on 31st march2014 Declaration of Dividend on 30thÂ Â June 2014 Declaration of Dividend on 30th Sep 2014 Declaration of Dividend on 31st dec 2014 Dividend Amount = 30000x 0.03 = 9000 9000x3/12 = $2250 .

Heidebrecht Design acquired 30- of the outstanding common stock of Qua.docx

rtodd588

Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $729,000 for the 40,500 shares. Quayle declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $356,300 for the year. At December 31, 2014, the market price of Quayle common stock was $25 per share. Indicate the balance sheet and income statement account balances at December 31, 2014, under each method of accounting Stock investment Unrealized gain Solution Unrealized gain = 40500 * 25 - 729000= $283500 Dividend revenue = 0.50 x 4 x 40500 = $91000 Revenue from stock investments Balance Sheet : $729000 + 30/100 * $356,300 - $91000 (reduction in cash balance due to payment of dividend) = $744890 Income Statement: 30/100 * 356300 + 91000 = $197890 .

Determine the missing amounts. (Hint For example, to solve for (a), .pdf

amrishinda

Determine the missing amounts. (Hint: For example, to solve for (a), Assets Liabilities Stockholders Equity - $28,730.) anuary 1, 2015 Assets Liabilities Stockholders\' equity $ 86,190 $126,412 s 137904 (g) 86,190 51,714 $172,380 57,460 57460 (d) 68,952 57460 0) 114,920 28730 (a) December 31, 2015 Assets Liabilities Stockholders\' equity 109174 (b) 63,206 45,968 157,440 229,840 252824 (k) 91,936 86,190 71250 (e) 17,238 80444 (h) 149,396 160,888 Stockholders\' equity changes in year Additional investment Dividends Total revenues Total expenses 17,238 11,492 574,600 11,492 11,492 402,220 379,236 16,089 482,664 442,442 393,026 Solution Donatello Company: January 1, 2015: Stockholders’ Equity = Assets - Liabilities Stockholders’ Equity = $86,190 - $57,460 Stockholders’ Equity = $28,730 December 31, 2015: Assets = Liabilities + Stockholders’ Equity Assets = $63,206 + $45,968 Assets = $109,174 Change in Stockholders’ Equity = Stockholders’ Equity, December 31, 2015 - Stockholders’ Equity, January 1, 2015 Change in Stockholders’ Equity = $45,968 - $28,730 Change in Stockholders’ Equity = $17,238 Change in Stockholders’ Equity = Additional Investment + Total Revenues - Total Expenses - Dividends $17,238 = Additional Investment + $402,220 - $379,236 - $11,492 Additional Investment = $5,746 Leonardo Company: January 1, 2015: Assets = Liabilities + Stockholders’ Equity $126,412 = Liabilities + $68,952 Liabilities = $57,460 December 31, 2015: Assets = Liabilities + Stockholders’ Equity $157,440 = $86,190 + Stockholders’ Equity Stockholders’ Equity = $71,250 Change in Stockholders’ Equity = Stockholders’ Equity, December 31, 2015 - Stockholders’ Equity, January 1, 2015 Change in Stockholders’ Equity = $71,250 - $68,952 Change in Stockholders’ Equity = $2,298 Change in Stockholders’ Equity = Additional Investment + Total Revenues - Total Expenses - Dividends $2,298 = $17,238 + $482,664 - $442,442 - Dividends Dividends = $55,162 Michelangelo Company: January 1, 2015: Assets = Liabilities + Stockholders’ Equity Assets = $86,190 + $51,714 Assets = $137,904 December 31, 2015: Assets = Liabilities + Stockholders’ Equity $229,840 = Liabilities + $149,396 Liabilities = $80,444 Change in Stockholders’ Equity = Stockholders’ Equity, December 31, 2015 - Stockholders’ Equity, January 1, 2015 Change in Stockholders’ Equity = $149,396 - $51,714 Change in Stockholders’ Equity = $97,682 Change in Stockholders’ Equity = Additional Investment + Total Revenues - Total Expenses - Dividends $97,682 = $11,492 + Total Revenues - $393,026 - $16,089 Total Revenues = $495,305 Raphael Company: January 1, 2015: Assets = Liabilities + Stockholders’ Equity $172,380 = Liabilities + $114,920 Liabilities = $57,460 December 31, 2015: Assets = Liabilities + Stockholders’ Equity Assets = $91,936 + $160,888 Assets = $252,824 Change in Stockholders’ Equity = Stockholders’ Equity, December 31, 2015 - Stockholders’ Equity, January 1, 2015 Change in Stockholders’ Equity = $160,888 - $114,920 Cha.

Question 1On January 1, 2015, Portia Ltd. issued shares worth.docx

makdul

Question 1 On January 1, 2015, Portia Ltd. issued shares worth $1,120,000 to Storm Ltd. to acquire 80% of Storm’s outstanding shares. On the acquisition date, Storm’s statement of financial position shows share capital of $420,000 and retained earnings of $777,000. At the acquisition date, all of Storm’s identifiable assets and liabilities equaled their fair values with the exception of the following: Inventories (fair value exceeded book value by $14,000) Investments (fair value exceeded book value by $14,000) Equipment (fair value exceed net book value by $105,000) At the acquisition date, Storm’s accumulated amortization account for the equipment had a balance of $805,000. As of the acquisition date, Storm’s equipment had a remaining useful life of 10 years. Additional information: · Portia records its investments using the cost method. · Portia uses the entity theory method of consolidation. · In 2017, Portia sold all its investments for a gain of $63,000. · In 2018, Portia purchased equipment from Storm for $127,400. At the sale date, Storm’s net book value of the equipment was $98,000. Storm had originally purchased the equipment for $140,000. After the purchase, Portia amortized the equipment at a rate of $18,200 per year for the remaining 7 years of its useful life, taking a full year of amortization in 2018. · During 2019, Storm purchased goods from Portia. At the end of 2019, Storm still had $28,000 of these goods in inventory. Portia had earned a gross margin of 40% on the sale. The goods were sold to external customers in 2020. · During 2019, Portia purchased goods from Storm. At the end of 2019, Portia still had $140,000 of these goods in inventory. Storm had earned a gross margin of 40% on the sale. The goods were sold to external customers in 2020. · During 2020, Portia sold goods of $140,000 to Storm. Portia earned a gross profit of $56,000 on this sale. At the end of 2020, Storm still had $56,000 worth of goods in inventory. · During 2020, Storm sold goods of $980,000 to Portia at a gross margin of 40%. At the end of 2020, Portia still had 10% of the goods in inventory. · During 2020, Portia received $126,000 in royalties from Storm. Between January 1, 2015 and December 31, 2019, Portia received $700,000 in royalties from Storm. The financial statements for Portia and Storm for the year ended December 31, 2020 are presented on the following pages. Statement of Financial Position As of December 31, 2020 Portia Ltd.Storm Ltd. Assets: Current assets: Cash $ 70,000 $ 28,000 Accounts receivable 210,000 224,000 Inventory 252,000140,000 532,000 392,000 Noncurrent assets: Land 140,000 - Equipment 7,000,000 3,780,000 Accumulated amortization, equipment (2,478,000) (1,736,000) Investment in Storm 1,120,000 ____-___ 5,782,000 2,044,000 Total assets $ 6,314,000 $ 2,436,000 ...

At the end of the 2014 annual reporting period, Barnard Corporation.pdf

aimeetradesolutions

At the end of the 2014 annual reporting period, Barnard Corporation\'s balance sheet showed the following: During 2015 the following selected transactions (summarized) wore completed: Sold and issued 1.600 shares of common stock at $29 cash per share (at year-end). Determined net income. $44,000. Declared and paid a cash dividend of $1 per share on the beginning shares outstanding Prepare a statement of stockholders\' equity for the year ended December 31. 2015. Solution BARNARD CORPORATION Statement of Stockholder\'s Equity Common Stock Paid in Capital Retained Earnings Total Shareholder\'s Equity Shares Amount Balance as of December 31, 2014 7000 $ 105,000 $ 17,000 $ 44,000 $ 166,000 Add: Net Income $ 44,000 $ 44,000 Less: Dividends declared $ 7,000 $ 7,000 Stock Issued 1600 24000 22400 $ 46,400 (1600*15) (1600*29)-24000 Balance as of December 31, 2015 8600 129000 39400 $ 81,000 $ 249,400 BARNARD CORPORATION Statement of Stockholder\'s Equity Common Stock Paid in Capital Retained Earnings Total Shareholder\'s Equity Shares Amount Balance as of December 31, 2014 7000 $ 105,000 $ 17,000 $ 44,000 $ 166,000 Add: Net Income $ 44,000 $ 44,000 Less: Dividends declared $ 7,000 $ 7,000 Stock Issued 1600 24000 22400 $ 46,400 (1600*15) (1600*29)-24000 Balance as of December 31, 2015 8600 129000 39400 $ 81,000 $ 249,400.

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Heidi Design acquired 20- of the outstanding common stock of Quigly Co (1).docx

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