P13-4A - Unrealized gain-Income Correct. Prepare the...

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P13-4A Glaser Services acquired 30% of the outstanding common stock of Nickels Company on January 1, 2008, by paying $800,000 for the 45,000 shares. Nickels declared and paid $0.30 per share cash di- vidends on March 15, June 15, September 15, and December 15, 2008. Nickels reported net income of $320,000 for the year. At December 31, 2008, the market price of Nickels common stock was $24 per share. Correct. Prepare the journal entries for Glaser Services for 2008 assum- ing Glaser cannot exercise signi- ficant influence over Nickels. (Use the cost method and assume that Nickels common stock should be classified as a trading security.) Date Account / Description Jan.1 Stock investments Cash Mar. 15Cash Dividend revenue June 15 Cash Dividend revenue Sept. 15 Cash Dividend revenue Dec. 15Cash Dividend revenue Dec. 31Market adjustment-Trading
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Unformatted text preview: Unrealized gain-Income Correct. Prepare the journal entries for Glaser Services for 2008, assum-ing Glaser can exercise significant influence over Nickels. Use the equity method. Date Account / Description Jan.1 Stock investments Cash Mar. 15 Cash Stock investments June 15 Cash Stock investments Sept. 15Cash Stock investments Dec. 15 Cash Stock investments Dec. 31 Stock investments Revenue from inv. in Nickels Co. Correct. In tabular form, indicate the investment and income statement account balances at December 31, 2008, under each method of accounting. (If answer is zero, please enter 0. Do not leave any fields blank.) Cost Method Stock Investments Common Stock Unrealized gain-Income Dividend revenue Revenue from investment in Nickels...
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This note was uploaded on 10/11/2011 for the course ACC557 ACC557 taught by Professor Na during the Spring '10 term at Strayer.

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P13-4A - Unrealized gain-Income Correct. Prepare the...

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