On December 31,2013,Dixie Corporation has the following information available:
On December 31,2013,Grimsled Corporation buys an 80% interest in Dixie Corporation for $240,000.On December 31,2013,the fair value of Dixie's assets and liabilities are equal to the respective book values.
Required:
1.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $20 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.
2.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $35 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.
3.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $10 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.

Question

On December 31,2013,Dixie Corporation has the following information available:  
On December 31,2013,Grimsled Corporation buys an 80% interest in Dixie Corporation for $240,000.On December 31,2013,the fair value of Dixie's assets and liabilities are equal to the respective book values.
Required:
1.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $20 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.
2.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $35 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.
3.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $10 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.

Quizplus · Accepted Answer

The Answer of On December 31,2013,Dixie Corporation has the following information available:  
On December 31,2013,Grimsled Corporation buys an 80% interest in Dixie Corporation for $240,000.On December 31,2013,the fair value of Dixie's assets and liabilities are equal to the respective book values.
Required:
1.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $20 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.
2.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $35 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.
3.On January 1,2014,Dixie Corporation sells 5,000 additional shares of common stock to noncontrolling stockholders at $10 per share.Prepare the journal entry for Grimsled Corporation on January 1,2014.

On December 31,2013,Dixie Corporation Has the Following Information Available