On January 1,2014,Walker Company pays $10 million for 40% of the outstanding common stock of a supplier called Dorglass,Inc.On December 1,2014,Dorglass,Inc.,declared and paid cash dividends of $100,000.For the year ending December 31,2014,Dorglass,Inc.also reported net income of $1,000,000.At December 31,2014,the fair value of 40% of Dorglass,Inc.'s stock was $9 million.On January 1,2015,all the Dorglass,Inc.'s stock was sold for $9 million.
Required:
Prepare journal entries on the following dates:
1.January 1,2014
2.December 1,2014
3.December 31,2014
4.January 1,2015
Explanations are not required.

Question

Quizplus · Accepted Answer

The Answer of On January 1,2014,Walker Company pays $10 million for 40% of the outstanding common stock of a supplier called Dorglass,Inc.On December 1,2014,Dorglass,Inc.,declared and paid cash dividends of $100,000.For the year ending December 31,2014,Dorglass,Inc.also reported net income of $1,000,000.At December 31,2014,the fair value of 40% of Dorglass,Inc.'s stock was $9 million.On January 1,2015,all the Dorglass,Inc.'s stock was sold for $9 million.
Required:
Prepare journal entries on the following dates:
1.January 1,2014
2.December 1,2014
3.December 31,2014
4.January 1,2015
Explanations are not required.

On January 1,2014,Walker Company Pays $10 Million for 40% of the Outstanding