On January 4, Year 1, Ferguson Company purchased 480,000 shares of Silva Company directly from one of the founders for a price of $30 per share. Silva has 1,200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $750,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $2,000,000 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.
b. Determine the December 31, Year 1, balance of the investment in Silva Company stock account.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 4, Year 1, Ferguson Company purchased 480,000 shares of Silva Company directly from one of the founders for a price of $30 per ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Consider the supply of peanut butter. 1) Which of the following would cause a movement along the supply curve (a change in the quantity supplied) for peanut butter? Check all that apply.
Answers (1)
Vacation pay payable is reported on the balance sheet as a (n): A) current liability B) long-term liability C) expense D) current liability or long-term liability, depending upon when the vacations will be taken by employees
Answers (1)
Courts apply the bill of rights to business corporations because they are:
Answers (1)
Adelphia Manufacturing issued $70,000 of direct materials and $10,000 of indirect materials for production.
Answers (1)
Marissa is preparing a cash budget for the Chief Financial Officer. What is this an example of?
Answers (1)
New Questions in Business
During Burns Company's first year of operations, credit sales totaled $156,000 and collections on credit sales totaled $113,000. Burns estimates that bad debt losses will be 1.0% of credit sales.
Answers (1)
A rational decision maker takes an action only if the a. marginal benefit is greater than both the average cost and the marginal cost. b. marginal benefit is greater than the marginal cost. c. marginal benefit is less than the marginal cost. d.
Answers (1)
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $110,500, and it estimates that 6% will be uncollectible. Required: 1.
Answers (1)
Which skills are most required for someone in Design? A) knowledge of building processes, knowledge of specialized tools, and knowledge of building laws B) drawing skills, creativity for new ideas, and ability to model large-scale building projects
Answers (1)
Stock X has a standard deviation of 22 percent per year and stock Y has a standard deviation of 8 percent per year. The correlation between stock A and stock B is. 21.
Answers (1)