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Control Alt Design acquired 30 % of the outstanding common stock of Walter Company on January 1, 2012, by paying $800,000 for the 45,000 shares. Walter declared and paid $.30 per share cash dividends on March 15, June 15, September 15, and December 15, 2012. Walter reported net income of $320,000 for the year. At December 31, 2012, the market price of Walter common stock was $24 per share.

Prepare the journal entries for Control Alt Design for 2012, asusming Control Alt Design can exercise significant influence over Walter. Use the equity method.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9982444

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