Any additional entries related to this investment

Assignment Help Financial Accounting

Reference no: EM131287947

A. On January 1, 2014,Garfield Company purchased 30% of the common shares of Edwards Company for $248,000. During the year, Edwards earned net income of $99,200 and paid dividends of $24,800. Prepare the entries for Garfield Company to record the purchase and any additional entries related to this investment in Edwards Company in 2014.

B. Garfield Company purchased, as an available-for-sale security, $86,300 of the 8%, 5-year bonds of Chester Corporation for $79,757, which provides an 10% return.

Prepare Garfield’s journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $81,985.

Reference no: EM131287947

Questions Cloud

Cost of goods sold and direct materials cost : The following information is available for the first month of operations of Hobbies R Us, a manufacturer of art and craft items: Cost of Goods Sold, Direct Materials Cost, Direct Labor Cost.

Why globally consistent brand image important to mastercard : MasterCard believed that the campaign established a successful platform to reach consumers in different countries. Discuss the possible differentation and integration facillitated by such a platform.

Why the estimates from the two valuation methods differ : Address the assumptions implicit in the models themselves as well as those you made during the valuation process. Also, explain why these prepared estimates may differ from the actual stick price today, or any given day.

Write about supply chain management and logistics in kuwait : Write about supply chain management and logistics in Kuwait. Kuwait is one of the Middle East countries. Need to talk about their logistics. What issues they have in supply chain and logistics?

Any additional entries related to this investment : On January 1, 2014,Garfield Company purchased 30% of the common shares of Edwards Company for $248,000. During the year, Edwards earned net income of $99,200 and paid dividends of $24,800. Prepare the entries for Garfield Company to record the purcha..

Identify security issues in packaging : Understand the impact of a major disruption on international trade.Identify the major international organization with an impact on logistics security.

Integration of new management trends developed : The business environment is continuously evolving with the integration of new management trends developed to create opportunity and respond to challenges. Innovation often challenges the status quo of organizations and change agents in an organiza..

Explain three key facts about short-run economic fluctuation : Identify the three key facts about short-run economic fluctuations and how the economy in the short run differs from the economy in the long run. Provide real-world examples of those "key facts."

Determining the leadership style strengths : Determine three (3) leadership style strengths and three (3) leadership style weaknesses of each of the selected public leaders. Evaluate the effectiveness of each public leader in terms of each leader's major successes.

User Account

All Pages