Question

On 2/1/17, Wall Corporation purchased 30,000 shares of ABC Company for $15 each. This investment represented...

On 2/1/17, Wall Corporation purchased 30,000 shares of ABC Company for $15 each. This investment represented 25% of the outstanding common stock of ABC, and Wall intends to hold the investment for at least a year. On 10/1/17, Wall received dividends of $1.20 per share. ABC’s net income for 2017 was $400,000, and the market value of ABC stock at 12/31/17 was $16 per share. Make all journal entries required by Wall in 2017.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.On 5/2/17, Anna Company purchased $100,000 of the 9%, 10-year bonds of Dexter Corporation for $106,247,...
1.On 5/2/17, Anna Company purchased $100,000 of the 9%, 10-year bonds of Dexter Corporation for $106,247, which provides an 8% return on annual interest payments made every 5/1.  Anna does not intend to hold the bonds until maturity, but will hold them for longer than a year.  The market value of the bonds at 12/31/17 is $106,100 and at 12/31/18 is $106,000.  On 3/1/19, Anna sells the bonds for $105,950.  What journal entries will Anna make in 2017 and 2018 to appropriately record these...
Draft Co. purchased 14,000 shares of Hamburg Corporation's 40,000 shares of common stock on January 1....
Draft Co. purchased 14,000 shares of Hamburg Corporation's 40,000 shares of common stock on January 1. This represented 35% of Hamburg's outstanding shares and gave Draft Co. significant influence over Hamburg's management and operations. On October 11, Hamburg declared and paid cash dividends of $30,000. On December 31, Hamburg reported net income of $125,000 for the year. Prepare the journal entries Draft Co. should record to account for the dividends received and the earnings reported by Hamburg Corporation.
On 12/31/16 Levinson Corp. held no investment securities. On 1/01/17 Levinson purchased 12,000 shares of Whitmore...
On 12/31/16 Levinson Corp. held no investment securities. On 1/01/17 Levinson purchased 12,000 shares of Whitmore Corp. stock for $50/share and continued to hold the stock until 9/12/18 when it was sold for $56/share (ignore transaction costs). On 8/20/17, and on 8/19/18 Levinson receives a dividend of $2/share on the Whitmore stock. The market value of Whitmore stock was $48/share on 12/31/17 and $51/share on 12/31/18. Required: Provide all investment related journal entries assuming that Levinson classifies the Whitmore Corp....
Jackson Company engaged in the following investment transactions during the current year. Feb 17,Purchased  430 shares of...
Jackson Company engaged in the following investment transactions during the current year. Feb 17,Purchased  430 shares of Medical Company common stock for  $15 per share plus a brokerage commission of  $150. Jackson does not have significant influence over Medical and it is closed as trading securities. April 1st. Bought  23,000 of the  100,000 outstanding shares of Olde Company for  $230,000. Goodwill of  $73,000 was included in the price. Jackson has significant influence. June 25 Received a  $1.30 per share dividend on Medical Company stock. June 30, Olde Company...
Jackson Company engaged in the following investment transactions during the current year. Feb. 17 Purchased 560...
Jackson Company engaged in the following investment transactions during the current year. Feb. 17 Purchased 560 shares of Medical Company common stock for $20 per share plus a brokerage commission of $100. Jackson does not have significant influence over Medical. April 1 Bought 36,000 of the 100,000 outstanding shares of Olde Company for $360,000. Goodwill of $86,000 was included in the price. June 25 Received a $1.20 per share dividend on Medical Company stock. June 30 Olde Company reported second-quarter...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following...
ABC Corporation has 10,000 shares $2 par value common stock issued and outstanding. Record the following transactions: Purchased 400 shares of its own $2 par value common stock for $ 20 per share. Sold 150 shares of treasury stock purchased in (a) for $22 per share. Sold 100 shares of treasury stock purchased in (a) for $20 per share. Sold the remaining 150 shares of treasury stock purchased in (a) for $16 per share.
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 112,000 shares of...
Equity Method for Stock Investment On January 4, Year 1, Ferguson Company purchased 112,000 shares of Silva Company directly from one of the founders for a price of $60 per share. Silva has 400,000 shares outstanding, including the Daniels shares. On July 2, Year 1, Silva paid $302,000 in total dividends to its shareholders. On December 31, Year 1, Silva reported a net income of $1,007,000 for the year. Ferguson uses the equity method in accounting for its investment in...
5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting...
5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment. 2017 ∙ Dividends received from Montreal Corporation amounted to $20,000. ∙ Net income reported by Montreal Corporation was $200,000. ∙ Current market value of Montreal Corporation investment on December 31, 2017, was $700,000. 2018 ∙ Dividends received from Montreal Corporation amounted to $30,000....
On January 2, 2017, Norwin Company purchased 3,000 shares of Oslo Company common stock for $60,000....
On January 2, 2017, Norwin Company purchased 3,000 shares of Oslo Company common stock for $60,000. The stock has a par value of $10 and is part of the total stock outstanding of 20,000 shares of Oslo Company. Total stockholders' equity of Oslo Company on January 2, 2017 was $600,000. Instructions Prepare necessary journal entries on the books of Norwin Company for the following transactions. If no entry is required, write "none" in the space provided. (Round all calculations to...
1. Investment in Red Corporation stock 2/5/16 You purchase 3,600 shares of Red Corporation stock for...
1. Investment in Red Corporation stock 2/5/16 You purchase 3,600 shares of Red Corporation stock for $4.20 per share. (Red Corporation has 194,000 shares outstanding.) You pay a broker fee of $468. 7/31/16 You receive $0.05 per share as a dividend payment from Red Corporation. 12/31/16 Red Corporation declares net income of $3,960. 11/15/17 You sell 900 of your shares of Red Corporation stock for $4,095. In addition, you pay a broker fee of $81. What is the amount of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT