On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of P100. Kylie Company's outstanding ordinary shares are 100,000. Kendall is part of Kylie's board of directors.                       During the year, Kylie Company paid cash dividends of P700,000 and had a net income of P2,500,000. How much is the Investment in associate on December 31, 2021?

Q: On January 2, 2020, Gamu Company purchased as a long term investment 10,000 ordinary shares of…

A: Solution: Cost of investment for Gamu = 10000*P70 = P700,000 Sale value of investment for Gamu =…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: (A)  amount of equity method income would Matthew recognize in 2021 from its ownership interest in…

Q: On July 1, 2021, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid…

A: The share and security acquired by the business entity are classified as assets. The ending balance…

Q: Aranda Corporation made the following cash purchases of securities during 2020, which is the first…

A: Investments:   Companies invest in stocks and bonds of other companies or governmental entity to…

Q: Fizer Pharmaceutical paid $86 million on January 2, 2021, for 6 million shares of Carne Cosmetics…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased…

A: Journal entries shows the recording of transactions during an accounting year and every transaction…

Q: Rome Inc. acquired 50,000 ordinary shares of Egypt Company at P120 per share. On February 14, 2020,…

A: Shareholder means the owner of the company who is holding share in its name. Right share means where…

Q: On January 4, 2021, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company…

A: 1) Journal entries:

Q: On January 4, 2021, Runyan Bakery paid $340 million for 10 million shares of Lavery Labeling Company…

A: Investment accounts consist of the shares in which the company has invested its money and holds some…

Q: On December 31, 2020, R papa Company, an entity with no subsidiary, purchased 10,000 ordinary shares…

A: An investment in other entity can be recorded using two methods; 1) Fair value method, and 2) Equity…

Q: On 1 October 2018, KING acquired 30,000 of VAM's 100,000 shares in exchange for 75,000 of its own…

A: Associate Company is the corporation in which another company has made substantial proportion of…

Q: On July 1, 2022, Denver Company purchased 30,000 shares of Eagle Company's 100,000 outstanding…

A: Lets understand the basics. When one entity purchase more than 20% of the share and less than 50% of…

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2020, PQR Company purchased 40,000 shares of Frank, Inc. at P100 per share. The…

A: Initial measurement of investment: Initially, the value of an investment property is determined by…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

Q: . On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.'s 50,000 outstanding common shares at…

A: Journal entries are those entries which are recorded in the journal book at the time when-ever a…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Solution: Cost of the investment = Purchase cost + brokerage - dividend  = 40000*100 + 120000 -…

Q: Tulip Corp. purchased 300,000 shares of common stock in Sherman Co. for $50 per share on January 2,…

A: Income statement is the financial statement which is prepared to show the profitability of an…

Q: On May 1, 2020, Clarke Inc. acquired 1,250 shares of Mayson Ltd. for $75,000. This investment…

A: Date Particulars Debit Credit 1-May-2020 Financial asset A/c  $75000     To Bank A/c   $75000…

Q: Fizer Pharmaceutical paid $68 million on January 2, 2021, for 4 million shares of Carne Cosmetics…

A: Equity investments is referred to the investment made by one company in the shares of another…

Q: On January 2, 2022, MAMBA Inc. purchased 5,000 shares of the 20,000 shares outstanding of BLACK…

A: Acquiring the outstanding common shares of a company gives the ownership rights to the buyer. The…

Q: On January 1, 2019, Lallo Company purchased 15% of Vintar Company's ordinary shares for P20,000,000.…

A: Formula: Income from the investment = Total dividends paid x Percentage of holding shares

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: In case of an entity having significant influence i.e. less than 50% stake in other entity. The…

Q: Prepare the journal entries to record the above three security purchases.

A: In these case the equity securities purchase do not indicate exercise of significant influence and…

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: A journal entry means the record the all business transaction of the company during the year for…

Q: On January 1, 2021, ABC purchased 80% of the outstanding shares of DEF at a cost of P960,000. On…

A: Non-controlling interest is the minority interest where shareholders hold less than 50% of the…

Q: On January 15, 2020 bieber co purchased 30,000 shares of Hand Co. at $35 per share, paying $10,000…

A: If a person is holding more than 20% shares in another company , then investment in that company…

Q: On June 1, 2020, Ping Corp. purchased 10,000 of Pong's 50,000 outstanding shares at a price of P6.00…

A: The correct statement is

Q: On January 3, 2021 A Company purchases a 15 percent interest in B Corporation's common stock for…

A: Share in net income of 2021 = Net income x 15% = P20000 x 15% = P3000

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: It is pertinent to note that transaction costs incurred for equity instruments designated at fair…

Q: Harrison Co. owns 20,000 of the 50,000 outstanding ordinary shares of Taylor, Inc. During 2021,…

A: The holding of share are considered as the investment and the  balance of investment can be…

Q: On October 15, 2020, the Liza Company received a liquidating dividend of P100,000 from Edward…

A: Equity method of accounting is followed when the holding company has a significant influence in…

Q: On January 2, 2020, Hanz Corporation bought 30% of the outstanding ordinary shares of Eve…

A: Hanzs' share in net income of Eve = Eves' Net income ×Hanzs' controlling share=P 1,400,000 × 30%=P…

Q: On April 1, 2019, BBB Company purchased 40% of the outstanding ordinary shares of Clarke Company for…

A: Note: It is assume that company preparing their financial account according calendar year.

Q: On December 15, 2021, Blue Company paid $100,000 for 8,0000 shares of Marble Company common stock.…

A: For the purpose of calculating investment by one company in another company the fair value of the…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine Inc. stock at P100 per…

A: Introduction:- Calculation of total cost of investment as follows:- Total cost of investment =…

Q: On January 4, 2018, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling…

A: 1. Prepare all appropriate journal entries related to the investment during 2016, assuming Runyan…

Q: On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per…

A: Cost of Shares purchased : = 40000 shares * P100 per share  = 4000000   Brokerage Fees : 120000…

Q: . (If there is no Dividend Revenue, then enter 0. Do not rou

A: Investor organization utilizes equity method of accounting for representing its investment in the…

Q: January 1, 2021, Beilich Enterprises bought 20% of the outstanding common stock of Wolfe…

A: The cash flow statement (CFS), sometimes known as the statement of cash flows, is a financial…

Q: On January 1, 2021, American Corporation purchased 30% of the outstanding voting shares of Short…

A: As per equity method of valuation, The total equity available is Fair value + Income - dividend…

Q: On January 1, 2020, Windsor Company purchased 6,100 shares of Kusher Company stock for $439,200.…

A: Revenue for 2020 (Net income x 30%) $ 136,800     Balance in investment account:…

Q: Fish Galore Corp. bought 25% of Fin Chaser Corporation's stock for $70,000 on January 1, 2020.…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: On January 1, 2020, Santos Ltd. purchased 30% of Yardley Co.’s 50,000 outstanding common shares at a…

A: Purchased 30% 50,000 outstanding common shares of Yardley Co.’s at $20 per share Yardley paid cash…

Q: Suppose that AXE company acquires exactly 25% of the voting common stock of Company SARDAR Inc. for…

A: Cost method of investment valuation is to value the investment on the basis of the cost which has…

Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…

A: The acquisition takes place when one company acquires ownership title on another company in order to…

Q: On July 1, 2019, Joltik Company purchased 80% of the outstanding shares of Galvantula Company at a…

A: SOLUTION NET INCOME REFERS TO THE AMOUNT AN INDIVIDUAL OR BUSINESS MAKES AFTER DEDUCTING COSTS ,…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.