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Can someone please help me understand why I got these wrongand what is the correct answers? ! Required information [The following information applies to the
Can someone please help me understand why I got these wrongand what is the correct answers?
! Required information [The following information applies to the questions displayed below.] Surge Corporation had outstanding 110,000 shares of no-par common stock. On January 10 of the current year, Crash Company purchased a block of Surge Company's shares in the open market at $20 per share for long-term investment purposes. At the end of the current year, Surge reported net income of $282,000 and cash dividends of $0.60 per share. At December 31 of the current year, Surge stock was selling at $22 per share. 2-a. Prepare the journal entries for Crash Company at the dates indicated assuming 11,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 2-b. Prepare the journal entries for Crash Company at the dates indicated assuming 44,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. 3-a. Show how the long-term investments should be reported on the current year's balance sheet. 3-b. Show how the long-term investments should be reported on the current year's income statement. Req 2A Req 2B Req Req 3B Prepare the journal entries for Crash Company at the dates indicated assuming 44,000 shares of Surge Corporation were purchased. Assume the investment will be held long term. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 a Investments 880,000 Cash 880,000 2 b Investments 88,000 Equity in investee earnings 88,000 3 c1 Dividends receivable 26,400 Investments 26,400 4 c2 Cash 26,400 Dividends receivable 26,400 5 d No journal entry required CRASH COMPANY Balance Sheet (Partial) At December 31, Current Year Dollar Amounts 11,000 44,000 shares shares Balance Sheet (noncurrent assets): Investments 242,000 880,000 X CRASH COMPANY Income Statement (Partial) For the Year Ending December 31, Current Year Dollar Amounts 11,000 shares 44,000 shares Income Statement: 6,600 $ 26,400 X Dividend revenue Unrealized gain Equity in investee earningsStep by Step Solution
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