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 values 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 values 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 values 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