Prepare journal entries to record the following transactions and events of Kash Company 2011 Jan 2 Purchased 30,000 shares of Bushtex Co common stock for $204,000 cash plus a brokers fee of $3,480 cash Bushtex has 90,000 shares of common stock outstanding and its policies will be significantly infl...

2011 Jan 2 LongTerm Investments Bushtex 207480 Cash 207480 Record purchase of investment 204000 3480 ...

Prepare journal entries to record the following transactions and events of Kash Company. 2011 Jan. 2 Purchased

Question:

Prepare journal entries to record the following transactions and events of Kash Company.
2011
Jan. 2 Purchased 30,000 shares of Bushtex Co. for $204,000 cash plus a broker’s fee of $3,480 cash. Bushtex has 90,000 shares of outstanding and its policies will be significantly influenced by Kash.
Sept. 1 Bushtex declared and paid a cash of $3.10 per share.
Dec. 31 Bushtex announced that net income for the year is $624,900.

2012
June 1 Bushtex declared and paid a cash of $3.60 per share.
Dec. 31 Bushtex announced that net income for the year is $699,750.
Dec. 31 Kash sold 10,000 shares of Bushtex for $162,500 cash.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...