User Account

All Pages

Prepare journal entries for years 2014 and 2015

Assignment Help Financial Accounting
Reference no: EM131323437

You may have to start with a free trial with a credit card and cancel directly after this module submission.

Once QuickBooksTM is loaded, you may have to reboot your computer.

Setting up company:

Go to Home page, select the widget to the direct top right of the word ‘help' and select on the left side ‘settings', then company setting.

For each edit, hit the pen picture on the right hand side of each section. Enter the company name, Shea Corporation. Enter information as indicated below:

Company address: Orchard Road

City: Greenwood Village, CO 80111

State: CO

ZIP code: 80111

Phone Number: 999.999.9999

Choose Accrual Basis

Go to advanced setting and be sure everything is turned on except the accounting setting for the closing of the books

X out of this screen, which returns you to the home page

TIPS:

In the home page, go to the top right hand corner, to the right of the name of the company, click the gear symbol, which is the main link for everything you need for changes.

From 2014 to end of 2015, all account names have the words "using the cost method" in them. From 2016 to 2017, all account names have the words "using the equity method" in them.

For doing the journal entries below: Go to top panel, in the middle of the top of the screen, where there is a plus sign (+) and select journal entries found in the other section.

It is up to you to create the correct accounts, with the proper journal entries
Important to remember:

Do not forget to click on ‘save and new' after you input and file.

Backup your company information many times as you work. To do this, click the button at the bottom of each screen called: save and new

Always check to be sure your input dates are correct. Transaction input date are on the top left side above the journal entry

Always best to record terms within the journal entry in the extra line provided to the right of A/R or A/P

2. Prepare journal entries. Be sure all dates agree with the problem and are not today's date

Cost method

Year 2014

Jan 1

Investor corporations purchased 8,000 shares (20% of investee company's outstanding stock) at a cost of $ 150,000.

May 31
Investee company declared and paid a cash dividends of $1.50 per share

Dec 31
Investee company announced that its net income for the year was $100,000
Cost method

Year 2015

Oct 1
Investee company declared and paid a cash dividend of $1.00 per share

Dec 21
Investee company announced its net income for the year in the amount of $ 80,000

Dec 31
Investor corporation sold all of its shares on investee company for $ 178,000 cash

Equity method

Year 2016

Jan 1

Investor corporations purchased 8,000 shares (20% of investee company's outstanding stock) at a cost of $ 150,000.

May 31
Investee company declared and paid a cash dividends of $1.50 per share

Dec 31
Investee company announced that its net income for the year was $100,000

Year 2017

Oct 1
Investee company declared and paid a cash dividend of $1.00 per share

Dec 21
Investee company announced its net income for the year in the amount of $ 80,000

Dec 31
Investor corporation sold all of its shares on investee company for $ 178,000 cash

Required:

Cost method: Prepare journal entries for years 2014 and 2015 in QuickBooksTM on Investor Corporation's books using the cost method, which assumes that investor does not have significant influence over Investee (for example, another corporation owns 70% of Investee Company's stock).

Equity method: Prepare in QuickBooksTM the journal entries for years 2016 to 2017 on Investor Corporation's books using the equity method, which assumes that Investor has significant influence over Investee Company.

Go to widget at the company name, select settings, and then chart of accounts. Click on cash for cost method and you will see the transactions for the cost method. Click on cash for equity method and you will see the transactions for the equity method. Copy and paste (or export) each to word document, being sure two columns of number show and submit to the assignment area.

In the word submission: Write a brief report between 200 and 300 words in length outlining your recommendations to senior management based on the information presented here

Reference no: EM131323437

Questions Cloud

Communications management plan : A project has been in execution for many months and you have been regularly sending updates to all the stakeholders as per the communications management plan. Suddenly at a phase-gate review, one of the stakeholders complains that she has not been..
Define and describe the market : Provide an overview of the main factors that have impacted upon this industry in the past. You will only be able to answer this after conducting extensive research on the industry.describe the size of the Industry for the most recent year available..
Determine cash flow as a percent of the notional principal : Determine your cash flow as a percent of the notional principal at each payment date under this arrangement. Assume for simplicity that each period is 180 days and that there are 360 days in the year.
Why do researchers calculate coefficient of determination : What does a coefficient of determination of .40 indicate?
Prepare journal entries for years 2014 and 2015 : Prepare journal entries for years 2014 and 2015 in QuickBooksTM on Investor Corporation's books using the cost method, which assumes that investor does not have significant influence over Investee
Better risk-reward tradeoff as measured by the sharpe ratio : You are considering the purchase of two stocks, A and B. The initial price of each stock is $100. If the risk-free rate is 4%, what is the risk premium on stock A? What is the risk premium on stock B? Which stock has the better risk-reward tradeoff a..
Clark faucet company case study : 1. What is the critical issue? 2. What can be done about it? 3. Can excellence in project management still be achieved and, if so, how? Whatsteps would you recommend?
Show how it can use currency and equity swaps : Show how it can use currency and equity swaps to maintain its position in the plain vanilla euro swap and convert its overall position to the one desired.
Plan procurement process : The contractual agreement under Cost-reimbursable Contracts, which influences the Plan Procurement process and where the seller is reimbursed for all the legitimate costs,

Reviews

Write a Review

Financial Accounting Questions & Answers

  Budgeted costs at its anticipated production level

Wooster has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $167,700; fixed overhead, $252,000. If Wooster now revises its anticipated production slightly upward, it would expect:

  The preferred is noncumulative and nonparticipating

Rensing, Inc., has $800,000 of 5% preferred stock and $1,200,000 of common stock outstanding, each having a par value of $10 per share. No dividends have been paid or declared during 2013 and 2014. As of December 31, 2015, it is desired to distribute..

  Determine the return on sales ratio for each method

XYZ company made $210,000 in sales to customers of which $150,000 was collected in cash. XYZ company incurred 75,500 in expenses of which $40,200 was paid in cash. What is the Accrural Basis Net Income and the Cash Basis Net income? Determine the Ret..

  Calculation of estimated allowance for doubtful accounts

Calculation of Estimated Allowance for doubtful accounts with a change in Sales - What would you answers be for parts 1 and 2 if sales for the current period were $220,000

  Prepare a statement of cash flows for the month of january

Preparation of statement of cash flow statement using direct method - Prepare a statement of cash flows for the month of January 2007.  Use good form and the direct format.

  Understanding of processes of global social change

The questions will focus on your understanding of processes of global social change. Your answers should be essays of 150 words each.

  What amount if any is deductible or reported on tax return

They paid their CPA during 2015 for income tax services - $200 amending for their 2013 tax return, $400 for amending their 2014 tax return, and $300 for tax planning advice related to the 2015 tax year. What amount if any is deductible or reported on..

  Determine the missing amounts for each independent case

Determine the missing amounts for each independent case below. Assume the amounts given are at the end of the company's first year of operation.

  Vitko corporation makes automotive engines for most current

vitko corporation makes automotive engines for most current month budget production was 6000 engines. standard power

  Sales dollars required for target net income

Sales dollars required for target net income Break-even point in units Break-even point in dollars

  Find the effect on the net operating income

If the Bath Department is dropped, find the effect on the net operating income of the company as a whole? (Input the amount as positive value. Omit the "$" sign in your response.

  Record the events under an accounting equation

Required - Based on this information alone: Record the events under an accounting equation. Prepare an income statement, balance sheet, and statement of cash flows for the 2016 accounting period

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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