Assuming heidebrecht design can exercise


Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $729,000 for the 40,500 shares. Quayle declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $356,300 for the year. At December 31, 2014, the market price of Quayle common stock was $25 per share.

Prepare the journal entries for Heidebrecht Design for 2014, assuming Heidebrecht Design CAN exercise significant influence over Quayle. Use the equity method.

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Accounting Basics: Assuming heidebrecht design can exercise
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