Softball Corporation reported the following balances at January 1, 20X9: Book Value $ 54,000 61,000 Fair Value $ 54,000 61,000 116,000 140,000 301,000 247,000 (150,000) $ 382,000 Item Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Common Stock ($9 par value) Additional Paid-In Capital Retained Earnings Total Liabilities and Equities $ 63,000 85,000 24,000 210,000 $ 382,000 $ 502,000 $ 63,000 On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball's stock. All tangible assets had a remaining economic life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Softball reported net income of $27,000 in 20X9 and paid dividends of $4,300. Pitcher uses the equity method in accounting for its investment in Softball. Required: Prepare all journal entries that Pitcher recorded during 20X9 with respect to its investment assuming Pitcher paid $479,000 for the ownership of Softball on January 1, 20X9. The amount of the differential assigned to goodwill is not impaired. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Softball Corporation reported the following balances at January 1, 20X9: Book Value $ 54,000 61,000 Fair Value $ 54,000 61,000 116,000 140,000 301,000 247,000 (150,000) $ 382,000 Item Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Common Stock ($9 par value) Additional Paid-In Capital Retained Earnings Total Liabilities and Equities $ 63,000 85,000 24,000 210,000 $ 382,000 $ 502,000 $ 63,000 On January 1, 20X9, Pitcher Corporation purchased 100 percent of Softball's stock. All tangible assets had a remaining economic life of 10 years at January 1, 20X9. Both companies use the FIFO inventory method. Softball reported net income of $27,000 in 20X9 and paid dividends of $4,300. Pitcher uses the equity method in accounting for its investment in Softball. Required: Prepare all journal entries that Pitcher recorded during 20X9 with respect to its investment assuming Pitcher paid $479,000 for the ownership of Softball on January 1, 20X9. The amount of the differential assigned to goodwill is not impaired. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Name: Hh2.Account Softball Corporation reported the following balances at Ja
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Description: Hh2.Account Softball Corporation reported the following balances at January 1, 20X9:Book Value$ 54,00061,000116,000301,000Fair Value$ 54,00061,000(150,000)$ 382,000ItemCashAccounts ReceivableInventoryBuildings and EquipmentLess: Accumulated Depreciat

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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