1 answer

Can you check this to make sure its correct. i also need help with the journal...

Question:

are ready to be installed, but first we need to close some apps. Update now 2. Ringer Company acquired 40% of the outstanding
1131 Investment in com 370,000 cash 370,000 04167 Cash 70,000 investment (175,000 X 407.) 70,000 100,000 12131 Investment Inc
can you check this to make sure its correct. i also need help with the journal entry names
are ready to be installed, but first we need to close some apps. Update now 2. Ringer Company acquired 40% of the outstanding stock of the Leopard Company for $370,000 on January 1, 2017. The purchase price equaled 40% of the book value of Leopard Company. During 2017, Leopard engaged in the following activities April 7 Declared and paid a cash dividend, $175,000. Dec. 31 Reported annual earnings for 2017, $250,000. Required: Prepare the journal entries that Ringer would need to make in 2017 with respect to its investment in Leopard Company.
1131 Investment in com 370,000 cash 370,000 04167 Cash 70,000 investment (175,000 X 407.) 70,000 100,000 12131 Investment Income |(251006 *107.) 100,000

Answers

Ans:

Date

General Journal

Debit

Credit

Jan-01

Investment in leopard Company Stock

$ 370,000

   Cash

$ 370,000

Apr-07

Cash

$ 70,000

Investment in Leopard company Stock

$ 70,000

(175000*40%)

Dec-31

Investment in leopard Company Stock

$ 100,000

income of Leopard Company

$ 100,000

(250,000*40%)

.

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