Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Complete the journal entries as necessary for both Part 1 and Part 2. Part 1. Transaction 1. On January 1st of 2020, Casey bought 10%

Complete the journal entries as necessary for both Part 1 and Part 2.

Part 1.

Transaction 1. On January 1st of 2020, Casey bought 10% of Apple Companys 100,000 shares of outstanding common stock at $20 a share.

2. On December 31, 2020, Apple reported $40,000 of net income and paid $20,000 of dividends.

3. On December 31, 2020, the market price of the stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account.

Part 2. Complete the journal entries as required:

Transaction 4. On January 1st of 2020, Casey bought 30% of Apple Companys 100,000 shares of outstanding common stock at $20 a share and has significant influence.

5. On December 31, 2020, Apple reported $40,000 of net income and paid $20,000 of dividends.

6. On December 31, 2020, the market price of the stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account before this transaction.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

British And German Banking Strategies

Authors: S. Janssen

1st Edition

0230220487, 9780230220485

More Books

Students also viewed these Accounting questions

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago

Question

Briefly explain the qualities of an able supervisor

Answered: 1 week ago

Question

Define policy making?

Answered: 1 week ago

Question

Define co-ordination?

Answered: 1 week ago

Question

Explain the main elements of a sustainable work system

Answered: 1 week ago

Question

Explain the nature of paid work

Answered: 1 week ago