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Bitnec Corporation acquired three separate investments at the beginhing of the yeac, Information about each acquisition, the dividendufeterest recelved daring the yeac, income, and yearend

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Bitnec Corporation acquired three separate investments at the beginhing of the yeac, Information about each acquisition, the dividendufeterest recelved daring the yeac, income, and yearend stock/debt price, follows: INITAL EVESTMENT Purchased 50.000 shares of Lynch Corporation at 511 per share. This itivestment was made with the intent of near-term trading profits. tynch Corporation has 5,000.000 shares outstanding. Purchased 5200.000 of Graham Corporation debt for 5200.000. This ifvestment was generally considered to be fong-term with no particular plans for near-term trading although it if unilikely Bitnec will held the imestment until maturity. Purchased 40% of the shares of Butlet Corporation at 530 per share. This imestment. was generally considered to be long-term with plans to exert significant influence Buffet Cotporation has 1,500,000 shares outstanding. DIVDENDS/NIEREST Lynch Corporation declared and paid didiends of 5050 per share: Graham Corporation paild interest on outstanding debe, induding 510.000 to Bitnec. Buffet Corporation dedared and paid dividends of 5025 per share. NET INCOME Lynch Corporation reparted net income of 54.000,000 for the year, Graham Corporation reported net income of $7,000,000 for the yeat. Buffet Corporation reported net income of 51.200,000 for the year: YEAR END STOCX PRECE Lynch Corporation's closing stock peice at the end of the year was 513 per share. Due to deteriorating finances, the value of Graham's debt held by Bitnec plunged to $150,000. Buffet Corporation's closing stock price at the end of the year was $33 per share. (a) Prepare joumal entries, as necersary, to account for the initial imvestment, dividend, and year-end stock price for the itvestment in lymch Corporation. (b) Prepare joumal entinles, as necessary, to account for the initial irvestment, interest and year-end debt value for the irvestment in Graham Corpocation securities. (c) Prepare journal entries, as necessary, to account for the initial imvertment, dividend and year-end stock price for the irvestment in Buffet Corponation. Bitnec Corporation acquired three separate investments at the beginhing of the yeac, Information about each acquisition, the dividendufeterest recelved daring the yeac, income, and yearend stock/debt price, follows: INITAL EVESTMENT Purchased 50.000 shares of Lynch Corporation at 511 per share. This itivestment was made with the intent of near-term trading profits. tynch Corporation has 5,000.000 shares outstanding. Purchased 5200.000 of Graham Corporation debt for 5200.000. This ifvestment was generally considered to be fong-term with no particular plans for near-term trading although it if unilikely Bitnec will held the imestment until maturity. Purchased 40% of the shares of Butlet Corporation at 530 per share. This imestment. was generally considered to be long-term with plans to exert significant influence Buffet Cotporation has 1,500,000 shares outstanding. DIVDENDS/NIEREST Lynch Corporation declared and paid didiends of 5050 per share: Graham Corporation paild interest on outstanding debe, induding 510.000 to Bitnec. Buffet Corporation dedared and paid dividends of 5025 per share. NET INCOME Lynch Corporation reparted net income of 54.000,000 for the year, Graham Corporation reported net income of $7,000,000 for the yeat. Buffet Corporation reported net income of 51.200,000 for the year: YEAR END STOCX PRECE Lynch Corporation's closing stock peice at the end of the year was 513 per share. Due to deteriorating finances, the value of Graham's debt held by Bitnec plunged to $150,000. Buffet Corporation's closing stock price at the end of the year was $33 per share. (a) Prepare joumal entries, as necersary, to account for the initial imvestment, dividend, and year-end stock price for the itvestment in lymch Corporation. (b) Prepare joumal entinles, as necessary, to account for the initial irvestment, interest and year-end debt value for the irvestment in Graham Corpocation securities. (c) Prepare journal entries, as necessary, to account for the initial imvertment, dividend and year-end stock price for the irvestment in Buffet Corponation

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