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question on january 1 2013 plano company acquired 8 percent 28 000shares of the outs 4278476

Question

On January 1, 2013, Plano Company acquired 8 percent (28,000shares) of the outstanding voting shares of the Sumter Company for$476,000, an amount equal to Sumter’s underlying book and fairvalue. On January 1, 2015, Plano purchased an additional 32 percent(112,000 shares) of Sumter for $2,245,750 in cash and began to usethe equity method. This price represented a $60,000 payment inexcess of the book value of Sumter’s underlying net assets. Planowas willing to make this extra payment because of a recentlydeveloped patent held by Sumter with a 15-year remaining life. Allother assets were considered appropriately valued on Sumter’sbooks. On July 1, 2016, Plano sold 10 percent (35,000 shares) ofSumter’s outstanding shares for $980,000 in cash. Although it soldthis interest, Plano maintained the ability to significantlyinfluence Sumter’s decision-making process. Assume that Plano usesa weighted average costing system. Sumter declares and pays a cashdividend to its stockholders each year of $175,000 on September 15.Sumter reported the following net incomes in 2013, 2014, 2015, and2016: Year Net Income 2013 $350,000 2014 421,200 2015 469,400 2016445,300 Each income figure can be assumed to have been earnedevenly throughout its respective year. In addition, the fair valueof these shares is indeterminate. Prepare the journal entries forPlano for the years of 2013 through 2016 relating to its investmentin Sumter stock. (If no entry is required for a transaction, select”No journal entry required” in the first account field. Round yourfinal answers to the nearest whole dollar.)

I just need the journal entries:

1.

Record the cost of 28,000 shares of Sumter Company.

2.

Record the annual dividends declared and received from SumterCompany for 2013. Because declaration and payment are on same day,a dividend receivable account is unnecessary.

3.

Record Plano's share of Sumter net income for 2013.

4.

Record any amortization of revaluation increments or decrementsfor 2013.

5.

Record change in fair value of investment in Sumter stock onDecember 31, 2013.

6.

Record any impairment of goodwill on December 31, 2013.

7.

Record the annual dividends declared and received from SumterCompany for 2014.

8.

Record Plano's share of Sumter net income for 2014.

9.

Record any amortization of revaluation increments or decrementsfor 2014.

10.

Record change in fair value of investment in Sumter stock onDecember 31, 2014.

11.

Record any impairment of goodwill on December 31, 2014.

12.

Record the cost of 112,000 additional shares of SumterCompany.

13.

Record the entry to recognize the retrospective effect of changeto equity method for 2013 and 2014.

14.

Record the annual dividend declared and received fromSumter.

15.

Record Plano's share of the income for Sumter for 2015.

16.

Record any amortization of revaluation increments or decrementsfor 2015.

17.

Record change in fair value of investment in Sumter stock onDecember 31, 2015.

18.

Record any impairment of goodwill on December 31, 2015.

19.

Record Plano's share of the income for Sumter for January 1,2016 to June 30, 2016.

20.

Record any amortization of revaluation increments or decrementsfor January 1, 2016 to June 30, 2016.

21.

Record change in fair value of investment in Sumter stock onJune 30, 2016.

22.

Record any impairment of goodwill on June 30, 2016.

23.

Record the 35,000 shares of Sumter Company sold.

24.

Record the annual dividend declared and received.

25.

Record Plano's share of the income for Sumter for July 1, 2016to December 31, 2016.

26.

Record any amortization of revaluation increments or decrementsfor July 1, 2016 to December 31, 2016.

27.

Record change in fair value of investment in Sumter stock onDecember 31, 2016.

28.

Record any impairment of goodwill on December 31, 2016.

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