During review of the adjusting entries to be recorded

Assignment Help Accounting Basics
Reference no: EM131012724

During review of the adjusting entries to be recorded on December 31, 20X8, Grand Corporation discovered that it had inappropriately been using the cost method in accounting for its investment in Case Products Corporation. Grand purchased 100 percent ownership of Case Products on January 1, 20X6, for $66,000, at which time Case Products reported retained earnings of $11,000 and capital stock outstanding of $27,000. The differential was attributable to patents with a life of four years. Income and dividends of Case Products were: 

 

Year

Net Income

Dividends

 

20X6

 

$

20,000

   

$

8,000

   

20X7

   

28,000

     

10,000

   

20X8

   

36,000

     

10,000

   

Required:

Prepare the correcting entry required on December 31, 20X8, to properly report the investment under the equity method, assuming the books have not been closed. Case Products' dividends were declared in early November and paid in early December each year

 

Reference no: EM131012724

Questions Cloud

How much is the regular monthly principal and interest : On January 1, 2016, you take out a mortgage loan in the amount of $1,000,000 to buy a piece of development property. Interest will accrue on your loan at 4.5%, fixed. Monthly payments of principal and interest will be required on the first of each mo..
People to create and submit a mall plan : A.It allowed people to create and submit a mall plan B. B.It enabled people to imagine and thus believe there was an entire mall built underground C.It increased sales volume by 25% D.It enabled people to located a mine shaft that plummeted them down..
Determine the number of shares outstanding : Determine the number of shares outstanding at the end of the current year. (Amounts to be deducted should be indicated by a minus sign.)
Principal ammortization : What will be the monthly payment if you borrow with a $100,000 15-year mortgage at an interest rate of 1% per month? How much of the first payment is interest? How much is principal ammortization?
During review of the adjusting entries to be recorded : Prepare the correcting entry required on December 31, 20X8, to properly report the investment under the equity method, assuming the books have not been closed.
Imagination at work : GE uses "Imagination at Work" as its slogan.   McDonalds uses "I'm Lovin' It".  Why do these international companies use slogans?To prevent ad obfuscation To ensure the achievement of the advertiser's marketing objectives To create a euphemistic imag..
Operating lease arrangement : The company will use an operating lease arrangement. (34%) tax bracket. What is the Present Value (PV) for these two alternatives? Use j (15%). Be sure to fully justify your answer. Use time lines. Prove first Dace in your answer.
Examine shakespeare stages of man : Start with the ethereal and then move through the stages of life from childhood to old age- perhaps the return to etherealness after death. Your only limits are you creativity. Examine Shakespeare's stages of man if your need some guidance
What annual equal payment series : What annual equal payment series is necessary to repay the following increasing series of payments?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem about basis for adjusting entries-annual adjustments

The following account balances are taken from the records of Laugherty Inc. at December 31, 2014. The Supplies account represents the cost of supplies on hand at the beginning of the year plus all purchases. A physical count on December 31, 2014, ..

  Firehouse inc issues 2000000 of 7 bonds due in 10 years

firehouse inc issues 2000000 of 7 bonds due in 10 years with interest payable at year end. the current market rate of

  Huron company produces a commerical cleaning compound known

huron company produces a commerical cleaning compound known as zoom. the direct materials and direct labor standards

  How many units must be sold to achieve a target profit of

how many units must be sold to achieve a target profit of 5000?using the degree of operating leverage what is the

  Who might be stakeholders

Who might be stakeholders? Do you think it is almost inevitable that the requirements of different stakeholders can conflict in some way? Give an example.

  In january 1 2009 vacker co acquired 70 of carper inc by

in january 1 2009 vacker co. acquired 70 of carper inc. by paying 650000. this included a 20000 control premium. carper

  What is the net profit company in the current year

Expects to spend $1,050,000 more in the future. What is the net profit that the company will recognize in the current year related to these contracts?

  Lavage rapide is a canadian company that owns and operates

lavage rapide is a canadian company that owns and operates a large automatic carwash facility near montreal. the

  Lime corporation distributes the stock basis of 425000 fair

for the last eleven years lime corporation has owned and operated four different trades or businesses. lime also owns

  What is maximum house price that you can afford

If this is the highest payment you can afford and don't have much to put down and the mortgage requires 5% down, what is maximum house price that you can afford?

  Learning experience-application of knowledge

Assume you have the power to make reforms to the way tax research and planning is currently conducted. Propose the reforms you would make. Justify your response.

  What marginal tax rate would an investor be

Debt issued by Southeastern Corporation currently yields 12%. A municipal bond of equal risk currently yields 8%. At what marginal tax rate would an investor be indifferent between these two bonds?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd