Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 6-4,000 shares of Silva Company directly from one of the founders for a price of $65 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $156,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $588,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 Investment in Siva Company Stock Cash Year 1, July 22 Investment in Silva Company Stocks Year 1, Dec. 31 Investment in Silva Company Stock Income of Silva Company Feedback Check My Work b. Determine the December 31, Year 1, balance of Investment in Sdva Company Stock
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 6-4,000 shares of Silva Company directly from one of the founders for a price of $65 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $156,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $588,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva a. Provide the Ferguson Company journal entries for the transactions involving its investment in Silva Company during Year 1. Year 1, Jan. 4 Investment in Siva Company Stock Cash Year 1, July 22 Investment in Silva Company Stocks Year 1, Dec. 31 Investment in Silva Company Stock Income of Silva Company Feedback Check My Work b. Determine the December 31, Year 1, balance of Investment in Sdva Company Stock
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter12: Statement Of Stockholders’ Equity (stockeq)
Section: Chapter Questions
Problem 3R: Chen Corporation began 2012 with the following stockholders equity balances: The following selected...
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