The writer is very fast, professional and responded to the review request fast also. Thank you.
Papke Company acquired 85% of the common stock of Serbin Company in two separate cashtransactions. The first purchase of 72,000 shares (60%) on January 1, 2008, cost $490,000.The second purchase, one year later, of 30,000 shares (25%) cost $220,000. Serbin Company’sstockholders’ equity was as follows:2008 2009Common Stock, $5 par $600,000 $600,000Retained Earnings, 1/1 175,000 201,000Net Income 46,000 60,000Dividends Declared, 9/30 (20,000) (25,000)Retained Earnings, 12/31 201,000 236,000Total Stockholders’ Equity, 12/31 $801,000 $836,000On April 1, 2009, after a significant rise in the market price of Serbin Company’s stock,Papke Company sold 21,600 of its Serbin Company shares for $260,000. Serbin Company notifiedPapke Company that its net income for the first three months was $15,000. The sharessold were identified as those obtained in the first purchase. Any difference between impliedand book values relates to goodwill. Papke uses the cost method to account for its investmentin Serbin Company.Required:Prepare the journal entries Papke Company would record on its books during 2009 to accountfor its investment in Serbin Company.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more