Business, 03.03.2020 02:24 coryintheswamp

Rowan Co. purchases 900 common shares (40%) of JBI Corp. as a long-term investment for $580,000 cash on July 1. JBI Corp. paid $11,000 in total cash dividends on November 1 and reported net income of $220,000 for the year.

Prepare Rowan's entries to record the purchase of JBI shares, the receipt of its share of JBI dividends and the December 31 year-end adjustment for its share of JBI net income.

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Answer from: fordkenae

See explanation section

Explanation:

Rowan Co.

Journal Entries

1. July 1 Investment - JBI Corp. Debit $580,000

Cash Credit $580,000

(As Rowan purchases JBI co. share as an investment, an asset (Investment) increases and another asset (Cash).

2. November 1 Cash Debit $4,400

Dividend on Investment - JBI Corp. Credit $4,400

(As JBI co. received dividend, Rowan co. received cash for investing in JBI co.'s 40%)

Calculation: $11,000 × 40% = $4,400.

3. December 31 Investment - JBI Co. Debit $88,000

Share of Net Income - JBI Co. Credit $88,000

(As Rowan Co. purchases JBI company' s share, they will receive the share of net income of JBI co.)

Calculation: $220,000 × 40% = $88,000

Answer from: Quest

the answer is d

brainliest! ?

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

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Rowan Co. purchases 900 common shares (40%) of JBI Corp. as a long-term investment for $580,000 cash...

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