BE 129

On January 1, Hillard Corporation purchased a 15% equity in Lewis Company for $360,000. At December 31, Lewis declared and paid a $40,000 cash dividend and reported net income of $98,000. Prepare the necessary journal entries for Hillard Corporation.

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BE 130

Stein Company had the following transactions pertaining to its short-term stock investments.

Jan. 1 Purchased 600 shares of Rice Company stock for $6,700 cash plus brokerage fees of $350.

June 1 Received cash dividends of $0.60 per share on the Rice Company stock.

Sept. 15 Sold 300 shares of the Rice Company stock for $3,500 less brokerage fees of $200.

Instructions

Journalize the transactions.