Question 6 Heidebrecht Design acquired 30% of the outstanding common stock of Qu
ID: 2428037 • Letter: Q
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Question 6
Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $779,400 for the 43,300 shares. Quayle declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $377,700 for the year. At December 31, 2014, the market price of Quayle common stock was $26 per share.
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Question 6
Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $779,400 for the 43,300 shares. Quayle declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $377,700 for the year. At December 31, 2014, the market price of Quayle common stock was $26 per share.
Explanation / Answer
2)
Date Particulars Debit Credit 1-Jan Investment A/c Dr. $779,400 To Bank A/c $779,400 (Record the purchase of 43,300 shares of Quayle Company) 15-Mar Bank A/c Dr. $17,320 To Dividend Revenue A/c $17,320 (Received Dividend @ $0.40 per share for 43,300 shares) 15-Jun Bank A/c Dr. $17,320 To Dividend Revenue A/c $17,320 (Received Dividend @ $0.40 per share for 43,300 shares) 15-Sep Bank A/c Dr. $17,320 To Dividend Revenue A/c $17,320 (Received Dividend @ $0.40 per share for 43,300 shares) 15-Dec Bank A/c Dr. $17,320 To Dividend Revenue A/c $17,320 (Received Dividend @ $0.40 per share for 43,300 shares)Related Questions
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