 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Accounting Available for sale
11. On July 1, 2011, Mountain Systems acquired 8,000 shares of Precision Services' 40,000 outstanding common shares at a cost of $240,000. The book value of Precision's net assets on that date was $880,000. The following data pertain to Precision Services for 2011:
Net income reported in 2011: January 1 - June 30... $28,000 July 1 - December 31... 36,000 Total... $64,000 Cash dividends declared and paid: January 1 - June 30... $30,000 July 1 - December 31... 30,000 Total... $60,000 Any excess of cost over book value is attributable to depreciable properties the market value of which exceeds the carrying value. The remaining life of the equipment is 10 years. (1) Prepare the entry to record the original investment on July 1. (2) Prepare the necessary entries (other than acquisition) for 2011 on Mountain Systems' books using the cost method. (3) Prepare the necessary entries (other than acquisition) for 2011 on Mountain Systems' books using the equity method. |
||||
Check out some similar questions!
Accounting for sale of part of a fixed asset
[ 1 Answers ]
Hi, I have an asset and I am going to sell part of the asset. The original asset was recorded as one whole value and there is no easy way of valuing the part of the asset to be sold. What are the different accounting options that I can use to record this sale including the entries required to...
Sale of Real Estate - Accounting for selling expenses
[ 2 Answers ]
What is the accounting for selling expenses associated with the sale of real property such as broker's commission, title fees, escrow fees, etc? I have a loss on the sale of this property before these fees (sales price less NBV of property). Do I post these expenses to the loss on sale of asset...
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
