Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation for $50,000 and 50,000 Shares (35%) of Energy Power
3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation for $50,000 and 50,000 Shares (35%) of Energy Power Drink Inc. for $80,000 both long term investments. On December 31, 2018 Training Camp declared $1 dividend payment per share, and Energy Power Drink Inc. report its Net Income as $55,000 and paid $0.50 per share dividend payment. At year end December 31, 2018 Training Camp Corporation shares are trading at $2.50 per share, whereas Energy Power Drink Inc. shares are trading at $1.20. On January 2, 2019 Big Basket Corporate received its dividend payment. Big Basket Corporation then sells their investments in Training Camp Corporation for $80,500 and Energy Power Drink Inc. for $79,500 on February 4, 2019. Prepare Big Basket Corporation's journal entries for 2018 and 2019. (30 marks) (Investment in Equity)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started