Prepare the journal entries made by Hannah

Assignment Help Accounting Basics
Reference no: EM132438929

Question - Equity Method

On January 1, 2018, Hannah Corporation acquired 40% of the outstanding common shares (400 of 1,000 outstanding shares) of Valley Manufacturing Ltd. for $60,000, which equals the book value of Valley. On December 31, 2018, Valley reported net income of $30,000 and declared and paid a $11,500 cash dividend.

Required -

1. Prepare the journal entries made by Hannah to record the transactions related to its investment in Valley.

2. Give the title and amount of each item (except cash) on the December 31, 2018, statement of financial position related to the investment. Name the statement of financial position section in which each item appears.

Reference no: EM132438929

Questions Cloud

Discuss the compensation administration productivity tools : Discuss the COMPENSATION ADMINISTRATION PRODUCTIVITY TOOLS,Tools such as a Salary Survey Analyzer to automate the entire Salary Surveying process,
What is the transaction price for this transaction : The bonus is reduced by $10,000. Assume that Acme uses the expected value approach. What is the transaction price for this transaction
Writing business message : What are some methods of emphasizing your point when writing a business message? Should we use bullet points or lists to help make our point?
Explain why the adaptation represents a frame : Identify one example of adaption in each of the four frames, symbolic, political, human resource and structural. Explain why the adaptation represents a frame
Prepare the journal entries made by Hannah : Question - Equity Method. Prepare the journal entries made by Hannah to record the transactions related to its investment in Valley
Discuss and explain the adaptive training : Discuss and explain the Adaptive Training, did it use an adaptive training methodology? If so, what were the positive aspects of the training? Why?
Financial information in healthcare organization : Explain the importance of financial information in a healthcare organization. Who are the stakeholders in the organization that need financial information
HI 5004 Marketing Management Assignment : HI 5004 Marketing Management Assignment Help and Solution, Holmes Institute - Assessment Writing Service - Integrated marketing channels and distribution system
Bill will be willing to pay the most for the stock : Bill will be willing to pay the most for the stock because he will get his money back in one year when he sells.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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