16-2

DO IT1 16.1 Kurtyka Corporation had the following transactions relating Jan. 1, 2017 Purchased 50, $1,000, 10% Spiller Company bonds fo to debt tuvesto w 5 ments Niake journai ase and Dec. 31, 2017 Jan. 1, 2018 Jan. 1, 2018 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. oi (a) Journalize the transactions, and (b) prepare the adjusting entry f interest on December 31, 2017. DO IT! 16-2 Presented below are two independent situations: 1. Edelman Inc. acquired 10% of the 500,000 shares of common stock of Schuberger Cor- Make jour investmen (LO 2) poration at a total cost of $11 per share on June 1 declared and paid a $160,000 dividend. On December 31, Schuberger reported net income of $550,000 for the year 7, 2017. On September 3, Schuberger 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. rities are classified as trad- Make jo DO IT1 16.1 Kurtyka Corporation had the following transactions relating Jan. 1, 2017 Purchased 50, $1,000, 10% Spiller Company bonds fo to debt tuvesto w 5 ments Niake journai ase and Dec. 31, 2017 Jan. 1, 2018 Jan. 1, 2018 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. oi (a) Journalize the transactions, and (b) prepare the adjusting entry f interest on December 31, 2017. DO IT! 16-2 Presented below are two independent situations: 1. Edelman Inc. acquired 10% of the 500,000 shares of common stock of Schuberger Cor- Make jour investmen (LO 2) poration at a total cost of $11 per share on June 1 declared and paid a $160,000 dividend. On December 31, Schuberger reported net income of $550,000 for the year 7, 2017. On September 3, Schuberger 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. rities are classified as trad- Make jo