on 6/30 racine declare and paid 60,000 dividend on 12/31 racine report a net inc

Question

on 6/30 racine declare and paid 60,000 dividend on 12/31 racine report a net income of 122.00 for the yr 12/31.the market price of racine fashion was 18 dollar per sharethe stock was classify as no trading/ i need to to prepare the recieving journal entry for 2014 for chico comestic b. i need also to prepare frank inc 3/18- dr side side credit side/ 6/30 accountitle dr side and credit side/ on 12/31 dr side and credit side/ on 6/1 dr side and credit side/ on 6/15 dr side and crdit side/on 12/31 dr side and credit side/ can you show me how it is done dumb jac

Explanation / Answer

If less than 20% of the stock is acquired and no significant influence or control exists, the investment is accounted for using the cost method. chico comestiv aguire 15 percent of the 200.000 of common stock of racine fashion of total cost of 13 par share on 3/18/14 3/18 Equity Investments (30,000 shares × $13) Dr 390,000 Cash Cr 390,000 (Acquire 15% of racine fashion stock) on 6/30 racine declare and paid 60,000 dividend Jun 30 Cash Dr 50,000 Dividend Revenue Cr 50,000 (Dividends received) 12/31the market price of racine fashion was 18 dollar per share 12/31 Trading Securities Market Value Adjustment Dr 150,000 Unrealized Losses Trading Securities Cr 150,000 (Adjust trading securities to market value. 30,000 Share *(18-13) = $150,000 Gain)

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.