15.3 #4 -E e Tara Enterprises l e Chegg Study I G1 e Chegg Study | G? .. Cengage

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15.3

#4

-E e Tara Enterprises l e Chegg Study I G1 e Chegg Study | G? .. Cengage Course Schedule | CengageNO' × Start ? ? ? ? ? v2 cengagenow con intake ssignment takeAssignmen Main doi voker-assignments& takeAssignmentSessionLoca or-assignment t ? ? ? ? Ch 15-3 Exercises and Problems Show Mc How Calculator Print Item Equity Method for Stock Investment 1. EX.15-01.ALGO On January 4, Year 1, Ferguson Company purchased 50,000 shares of Silva Company directly from one of the founders for a price of 60 per share. Silva has 200,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid 145,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $450,000 for the year. Ferguson uses the equity method in accounting for its investment in Silva. 2. EX.15-07.BLANKSHEET AL... 3. EX.15-10.BLANKSHEET.AL. 4. EX.15-11 ALGO a. Provide the Ferguson Company journal entries for the transactions Involving Its Investment In Silva Company during Year1 5. EX. 15-15.BLANKSHEET.AL..?. 6. EX.15-23.ALGO 7. EX.15-20.ALGO Year 1 Jan. 4 ear 1 July 2 Year 1 Dec. 31 b. Determine the December 31, Year 1, balance of Investment in Silva Company Stock. Check My Work 2 more Check My Work uses remaining. Previous Next Progress: 4/7 items Assignment Score: 26.35% All work saved. Email Instructor Save and Exit Submit Assignment for Grading 3:50 AM 3/28/2018 21 Type here to search

Explanation / Answer

Year 1 Jan 4 Investment in Silva company's stock 3000000 =50000*60              Cash 3000000 Year 1 July 2 Cash 36250 =145000*25%          Investment in Silva company's stock 36250 Year 1 Dec 31 Investment in Silva company's stock 112500 =450000*25%          Revenue from investment 112500 Balance of Investment in Silva company's stock=3000000+36250-112500= $2923750

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