Don't give solution in image format.. As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 480,000shares for $560,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and bookvalue of AMC's net assets were equal. During the year, AMC earned net income of $330,000 and distributed cashdividends of 25 cents per share. At year-end, the fair value of the shares is $593,000 Record the cash dividend of 25cents per share. Record any necessary year - end adjusting journal entry when the fair value of the shares held are $593,000 at year-end.

Purchase of investment:Debit: Investment, 560,000Credit: Cash, 560,000 Share in net income= 330,000…

Answered: As a long-term investment, Painters'…

Principles of Accounting Volume 1

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Chapter11: Long-term Assets

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Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Ltd’s 400,000 shares for OMR480,000 at the beginning of the financial year of both companies. On the purchase date, the fair value and the book value of AMC’s net assets were equal. During the year, AMC earned net income of OMR250,000 and distributed cash dividends of OMR0.250 per share. At year-end, the fair value of the shares is OMR505,000. Required: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (Cost Method) 2.Assume significant influence was acquired. Re-enact the appropriate journal entries from the purchase through the end of the year to report the investment balance in the consolidated financial statements of Painters’ Equipment Company. (Equity Method)
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As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 510,000 shares for $590,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $360,000 and distributed cash dividends of 30 cents per share. At year-end, the fair value of the shares is $626,000. Record Painters' Equipment's share of AMC Supplies' $360,000 net income. Record the cash dividend of 30 cents per share. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $626,000 at year-end.
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 1. Record the purchase of AMC Supplies shares for $550,000 as a long-term investment. 2. Record Painters' Equipment's share of AMC Supplies' $320,000 net income. 3. Record the cash dividend of 20 cents per share. 4. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000 at year-end.
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000. 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Record the purchase of AMC Supplies shares for $550,000 as a long-term investment. Record Painters' Equipment's share of AMC Supplies' $320,000 net income. Record the cash dividend of 20 cents per share. Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000.
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Incorporated's 430,000 shares for $510,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $280,000 and distributed cash dividends of 15 cents per share. At year-end, the fair value of the shares is $538,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 4 Record the purchase of AMC Supplies shares for $510,000 as a long-term investment. Note: Enter debits before credits. Transactions General Journal Debit Credit
[The following information applies to the questions displayed below.]As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 520,000 shares for $600,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $370,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $637,000. Required:1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a)Record the purchase of AMC Supplies shares for $600,000 as a long-term investment. b)Record Painters' Equipment's share of AMC Supplies' $370,000 net income. c) Record the cash dividend of 25 cents per share. d)Record any necessary year-end…
At the beginning of the current year, Zaijan Company acquired an investment property for 48 million. In the acquisition, Zaijan made a 30% down payment and issued a 5-year non-interest-bearing note fore the remainder. The equal amount of 6,720,000 is payable at the end of each year. The prevailing market rate of interest for similar instrument is 12%. To complete the transaction, Zaijan Company paid transaction costs amounting to 500,000. Round off present value factors to three decimal places. What is the correct cost of the investment property at acquisition date?a. 48,000,000b. 39,125,600c. 38,625,600d. 24,225,600
At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $45 million. At the time of purchase, the carrying value of Sky Tech's net assets was $75 million. The fair value of Sky Tech's depreciable assets was $15 million in excess of their book value. For this year, Sky Tech reported a net income of $75 million and declared and paid $15 million in dividends.The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is:
At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of their book value. For this year, Sky Tech reported a net income of $80 million and declared and paid $20 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: Multiple Choice O $6.0 million. $20 million. $30 million. None of these answer choices are correct.
On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc. Shuswap contributed equipment with a book value of $900,000 and a fair value of $2,100,000 for a 50% interest in the joint venture. On December 31, Year 8, Okanagan Inc. reported a net income of $612,000. The equipment transferred has an estimated useful life of 20 years. Ignore taxes. Assume the transaction does not have commercial substance because Shuswap Ltd. owned a similar portion of the same type of equipment both before and after the contribution to the joint venture. Calculate the gain on the contribution of equipment and prepare the journal entries for Shuswap Inc. to record the events on January 1 and December 31, Year 8, including Shuswap's share of profit.
On January 1, Year 8, Shuswap Inc. and Kalamalka Inc. formed a new joint venture, Okanagan Inc. Shuswap contributed equipment with a book value of $900,000 and a fair value of $2,100,000 for a 50% interest in the joint venture. On December 31, Year 8, Okanagan Inc. reported a net income of $612,000. The equipment transferred has an estimated useful life of 20 years. Ignore taxes. Assume the transaction does not have commercial substance because the equipment will be used for the same purpose by Okanagan. Calculate the gain on the contribution of equipment and prepare the journal entries for Shuswap Inc. to record the events on January 1 and December 31, Year 8, including Shuswap's share of profit.

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