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BELLOWS CORPORATION had $100,000 in its Cash account on January 1, Year 1. On June 15, Year 1, Bellows Corp. acquired 100 shares ofSonny, Inc.

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BELLOWS CORPORATION had $100,000 in its Cash account on January 1, Year 1. On June 15, Year 1, Bellows Corp. acquired 100 shares ofSonny, Inc. for S75 per share. The purchase represented 5% of the shares outstanding. Prepare the journal entry required to record this transaction and post it to the appropriate T-accounts: June 15 Year 1 + Cash (A)- 100,000 Jan. 1 2. On September 15, Year 1, Bellows Corp. received dividends from Sonny of $2 per share. Prepare the journal entry required to record this transaction and update the appropriate T-accounts: Sep. 15 Year 1 100,000 Jan. 1 3. At December 31, Year 1, the value of the stock was $120 per share. Prepare the required adjusting entry and update the appropriate T-accounts: Balance in Investment in Marketable Equity Securities 1231|FairValuLL MarketableEquitySecurities Amount for Adjusting Entry Year Dec. 31 Year 1 +Cash (A) 100,000 Jan. I On February 17, Year 2, Bellows sold the stock for $115 per share. Prepare the journal entry required 4. to record this transaction and update the appropriate T-accounts: Feb. 17 Year 2 Note: Start by entering the beginning balances (as of January 1, Year 2) in the first two T-accounts shown below + Cash (A)- Jan. 1 Jan. 1 PARADE CORPORATION Parade Corp. had $10,000,000 in its Cash account on January 1, Year 1.On January 2, Year 1, Parade Corp. paid $5,000,000 cash to acquire 400,000 shares of stock in Band Corp. These shares represent 40% of Band Corp.'s total outstanding stock. Prepare the journal entry required to record this transaction and, after entering the beginning Cash account balance, post it to the appropriate T- accounts: Jan. 2 Year 1 For the year ended December 31, Year 1, Band Corp. earned $800,000 in net income. Prepare the 2. journal entry required to record this transaction and update the appropriate T-accounts: Dec. 31 Year 1 On December 31, Year 1, Band Corp. declared and paid $500,000 in dividends. Prepare the journal 3. entry required to record this transaction and update the appropriate T-accounts Dec. 31 Year 1 On March 5, Year 2, On March 5, Year 2, Bellows sold all 400,000 shares of its Parade stock for $20 4. per share. Prepare the journal entry required to record this transaction and update the appropriate T- accounts: Mar. 5 Year 2 Note: Start by entering the beginning balances (as of January 1, Year 2) in the first two T-accounts shown below. Cash (A)an. I Jan

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