16-2

DO IT: 16-1 Kurtyka Corporation had the following transactions reiag Jan. 1, 2017 Purchased 50, $1,000, 10% spiller Company boads ake journal e hose and a interest accu is payable annually on January 1. Accrued interest on Spiller Company bonds. Received interest from Spiller Company bonds. Sold 30 Spiller Company bonds for $29,000. LO 1) Dec. 31, 2017 Jan. 1, 2018 Jan. 1, 2018 (a) Journalize the transactions, and (b) prepare the adjusting entry for the accrual of interest on December 31, 2017 DO IT 16-2 Presented below are two independent situations: Make journal I investments. I, Edelman Inc. acquired 10% of the 500,000 shares of common stock of Schuberger Cor- poration at a total cost of $11 per share on June 17, 2017. On September 3, Schuberger declared and paid a $160,000 dividend. On December 31, Schuberger reported net income of $550,000 for the year (LO 2) 2. Wen Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker's 100,000 outstanding shares of common stock at a cost of $18 per share on January 1, 2017. On May 15, Hunsaker declared and paid a cash dividend of $150,000. On December 31, Hunsaker reported net income of $270,000 for the year. Prepare all necessary journal entries for 2017 for (a) Edelman and (b) Wen. DITI 16-3 a Some of Tollakson Corporation's investment securities are classified as trad. Make ioum