Question
In: Accounting
Roth Corporation used the equity method to report the following transactions for the years 2018 and...
Roth Corporation used the equity method to report the following
transactions for the years 2018 and 2019:
2018 Feb. 2 Purchased 40% of the voting common shares of Dunn
Enterprises Inc. for $500,000.
This is a long-term investment giving Roth Corporation significant
influence over the operations of Dunn Enterprises Inc.
Oct. 15 Received $20,000 cash dividends on Dunn Enterprises Inc. common shares.
Dec. 31 Dunn Enterprises Inc. reported total income of $190,000 for the year ended December 31, 2018.
2019 Jun. 30 Dunn Enterprises Inc. reported total income of $40,000 for the six months ended June 30, 2019.
Jun 30 Sold one-half of the Dunn Enterprises Inc. shares for $275,000.
Prepare journal entries to record the above transactions.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
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January and February 2020
c. Purchased a used truck for $10,000 on credit (recorded as an
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Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
Roth Contractors Corporation was incorporated on December 1,
2019 and had the following transactions during December:
Part A a. Issued common stock for $5,000 cash
b. Paid $1,200 cash for three months’ rent: December 2019;
January and February 2020
c. Purchased a used truck for $10,000 on credit (recorded as an
account payable)
d. Purchased $1,000 of supplies on credit. These are expected to
be used during the month (recorded as expense)
e. Paid $1,800 for a one-year truck insurance...
Roth Contractors Corporation was incorporated on December 1, 2019 and had the following transactions during December:...
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2019 and had the following transactions during December:
Part A a. Issued common stock for $5,000 cash
b. Paid $1,200 cash for three months’ rent: December 2019;
January and February 2020
c. Purchased a used truck for $10,000 on credit (recorded as an
account payable)
d. Purchased $1,000 of supplies on credit. These are expected to
be used during the month (recorded as expense)
e. Paid $1,800 for a one-year truck insurance...
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2019 and had the following transactions during December: Part A a.
Issued common stock for $5,000 cash b. Paid $1,200 cash for three
months’ rent: December 2019; January and February 2020 c. Purchased
a used truck for $10,000 on credit (recorded as an account payable)
d. Purchased $1,000 of supplies on credit. These are expected to be
used during the month (recorded as expense) e. Paid $1,800 for a
one-year truck insurance...
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Fair value method:
Equity method:
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Fair value method:
Equity method:
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