Suppose on February 1, 20X6, Deer Motors paid $380 million for a 40% investment in Phase Motors. Assume Phase earned net income of $50 million and paid cash dividends of $25 million during 20X6 What method should Deer Motors use to account for the investment in Phase? Give your reason. Journalize these three transactions on the books of Deer Motors. Show all amounts in millions of dollars and include an explanation for each entry Post to the Long-Term Investment T-account What is its balance after all the transactions are posted? 1. 2. 3. 1. What method should Deer Motors use to account for the investment in Phase? Give your reason V is appropriate because Deer Motors holds a 40% investment in Phase and, therefore, will have V over Phase. 2. Journalize these three transactions on the books of Deer Motors. (Show all amounts in millions of dollars. Record debits first, then credits. Explanations will appear on the last line of the journal entry) Begin with the purchase of the investment in Phase Journal Entry Date Accounts and Explanations Debit Credit Feb hoose from any list or enter any number in the input flelds and then continue to the next question.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Suppose on February 1, 20X6, Deer Motors paid $380 million for a 40% investment in Phase Motors. Assume Phase earned net income of S50 million and paid cash dividends of $25 million during 20X6.
What method should Deer Motors use to account for the investment in Phase? Give your reason.
Journalize these three transactions on the books of Deer Motors. Show all amounts in millions of dollars and include an explanation for each entry
Post to the Long-Term Investment T-account What is its balance after all the transactions are posted?
1.
2.
3.
1. What method should Deer Motors use to account for the investment in Phase? Give your reason
is appropriate because Deer Motors holds a 40% investment in Phase and, therefore, will have
V over Phase.
2. Journalize these three transactions on the books of Deer Motors. (Show all amounts in millions of dollars. Record debits first, then credits. Explanations will appear on the last line of the journal entry)
Begin with the purchase of the investment in Phase.
Journal Entry
Date
Accounts and Explanations
Debit
Credit
Feb
1
Choose from any list or enter any number in the input fields and then continue to the next question.
Transcribed Image Text:Suppose on February 1, 20X6, Deer Motors paid $380 million for a 40% investment in Phase Motors. Assume Phase earned net income of S50 million and paid cash dividends of $25 million during 20X6. What method should Deer Motors use to account for the investment in Phase? Give your reason. Journalize these three transactions on the books of Deer Motors. Show all amounts in millions of dollars and include an explanation for each entry Post to the Long-Term Investment T-account What is its balance after all the transactions are posted? 1. 2. 3. 1. What method should Deer Motors use to account for the investment in Phase? Give your reason is appropriate because Deer Motors holds a 40% investment in Phase and, therefore, will have V over Phase. 2. Journalize these three transactions on the books of Deer Motors. (Show all amounts in millions of dollars. Record debits first, then credits. Explanations will appear on the last line of the journal entry) Begin with the purchase of the investment in Phase. Journal Entry Date Accounts and Explanations Debit Credit Feb 1 Choose from any list or enter any number in the input fields and then continue to the next question.
J8UPRalize these three transactions on the books of Deer Motors. Show all amounts in millions of dollars and include an explanation for e
3.
Post to the Long-Term Investment T-account. What is its balance after all the transactions are posted?
Journal Entry
Date
Accounts and Explanations
Debit
Credit
20X6
Now, record the cash dividends received.
Journal Entry
Date
Accounts and Explanations
Debit
Credit
20X6
3. Post to the Long-Term Investment T-account. What is its balance after all the transactions are posted? (Enter amounts in millions.)
Long-Term Investment
Choose from any list or enter any number in the input fields and then continue to the next question.
Transcribed Image Text:J8UPRalize these three transactions on the books of Deer Motors. Show all amounts in millions of dollars and include an explanation for e 3. Post to the Long-Term Investment T-account. What is its balance after all the transactions are posted? Journal Entry Date Accounts and Explanations Debit Credit 20X6 Now, record the cash dividends received. Journal Entry Date Accounts and Explanations Debit Credit 20X6 3. Post to the Long-Term Investment T-account. What is its balance after all the transactions are posted? (Enter amounts in millions.) Long-Term Investment Choose from any list or enter any number in the input fields and then continue to the next question.
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