Prepare journal entries to record the following transactions and events of Kareen Company 2009 Jan 2 Purchased 55,000 shares of Altus Co common stock for $374,000 cash plus a brokers fee of $2,650 cash Altus has 137,500 shares of common stock outstanding and its policies will be significantly influ...

2009 Jan 2 LongTerm InvestmentsAltus 376650 Cash 376650 Record purchase of investment 374000 2650 Ka ...

Prepare journal entries to record the following transactions and events of Kareen Company. 2009 Jan. 2 Purchased

Question:

Prepare journal entries to record the following transactions and events of Kareen Company.
2009
Jan. 2 Purchased 55,000 shares of Altus Co. for $374,000 cash plus a broker’s fee of $2,650 cash. Altus has 137,500 shares of outstanding and its policies will be significantly influenced by Kareen.
Sept. 1 Altus declared and paid a cash of $3.05 per share.
Dec. 31 Altus announced that net income for the year is $1,106,900.
2010
June 1 Altus declared and paid a cash of $3.30 per share.
Dec. 31 Altus announced that net income for the year is $1,240,900.
Dec. 31 Kareen sold 11,000 shares of Altus for $294,250 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...