Company T had 32,000 outstanding shares of common stock, par value $10 per share. On January 1 of the current year, Company P purchased some of Company Ts shares as a long-term investment at $23 per share. At the end of the current year, Company T reported the following: income, $48,000, and cash dividends declared during the year, $19,500. The fair value of Company T stock at the end of the current year was $20 per share.
2-a. Prepare the journal entries for Company P at the dates indicated assuming 3,200 shares of Company T were purchased. Assume the investment will be held long term.
2-b. Prepare the journal entries for Company P at the dates indicated assuming 8,000 shares of Company T were purchased. Assume the investment will be held long term.
3-a. Complete the following schedule to show the separate amounts that should be reported on the current year's balance sheet of Company P:
3-b. Complete the following schedule to show the separate amounts that should be reported on the current year's income statement of Company P:
Complete the following schedule to show the separate amounts that should be reported on the current year's income statement of Company P: (Amounts to be deducted should be indicated by a minus sign.) COMPANY P Current Year DOLLAR AMOUNTS 3,200 shares 8,000 shares Income Statement (Other items): 1,950 $ Dividend revenue 0 (9,600) Unrealized loss 0 $ Equity in investee earnings 12,000 Prepare the journal entries for Company P at the dates indicated assuming 8,000 shares of Company T 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 Investments 184,000 Cash 184,000 2 b Investments 12,000 Equity in investee earnings 12,000 Prepare the journal entries for Company P at the dates indicated assuming 3,200 shares of Company T 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.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 Investments 73,600 Cash 73,600 Complete the following schedule to show the separate amounts that should be reported on the current year's balance sheet of Company P COMPANY P Current Year DOLLAR AMOUNTS 8,000 shares 3,200 shares Balance Sheet (noncurrent assets): $ 64,000$ Investments 191,125 Required information The following information applies to the questions displayed below.] Company T had 32,000 outstanding shares of common stock, par value $10 per share. On January 1 of the current year, Company P purchased some of Company T's shares as a long-term investment at $23 per share. At the end of the current year, Company T reported the following: income, $48,000, and cash dividends declared during the year, $19,500. The fair value of Company T stock at the end of the current year was $20 per share. 2-a. Prepare the journal entries for Company P at the dates indicated assuming 3,200 shares of Company T were purchased. Assume the investment will be held long term. 2-b. Prepare the journal entries for Company P at the dates indicated assuming 8,000 shares of Company T were purchased. Assume the investment will be held long term. 3-a. Complete the following schedule to show the separate amounts that should be reported on the current year's balance sheet of Company P: 3-b. Complete the following schedule to show the separate amounts that should be reported on the current year's income statement of Company P: Complete this question by entering your answers in the tabs below. Req 3A Req 2A Req 2B Req 3B Complete the following schedule to show the separate amounts that should be reported on the current year's income CApee te te b dedcted sbe,.d be idieated bya minue cian ainkemo on
