« previous next »

Author Question: RBO Company purchased 25 of the voting common stock of YJD Company on January 1 and paid 800,000 for ... (Read 190 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
on: Jul 6, 2018
RBO Company purchased 25 of the voting common stock of YJD Company on January 1 and paid 800,000 for the investment. YJD Company reported 50,000 of earnings for the year and paid 10,000 in cash dividends.
 
  Calculate investment income and the balance sheet investment account balance for RBO Company using the following methods:
 
  a, Cost method.
  b, Equity method.
 
 
 What will be an ideal response?

Question 2

When do you run the Post-Closing Trial Balance report?
 a. Before adjustments are made
   b. Before financial statements are run
   c. After closing entries are posted
   d. None of the above


Joc

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jul 6, 2018
Answer to Question 1

Investment Income Investment Account

(a) Cost method 2,500  800,000

(b) Equity method 12,500  810,000

 10,000 cash dividends x 25
 50,000 earnings x 25
 800,000 + 12,500 - 2,500

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Several species of squirrels have melanistic phases. In large parts of United States and Canada, the Several species of squirrels have melanistic phases. In large parts of United States and Canada, the
By age 3, children develop scripts for common events such as eating at a restaurant. By age 3, children develop scripts for common events such as eating at a restaurant.
Common skin signs are often evidence of an illness or disorder. A vesicle is a small fluid filled ... Common skin signs are often evidence of an illness or disorder. A vesicle is a small fluid filled ...
Common Risk Factors Common Risk Factors
ADHD (Stock photo) ADHD (Stock photo)
Three common eukaryotic promoter consensus sequence elements Three common eukaryotic promoter consensus sequence elements
Video: Muscle Fatigue and Recovery

For a complete list of videos, visit our video library