Question
Excel format! Please show calculations, it is important! Thank you! PROBLEM # 1 ABC Co. purchased 1,000 shares of XYZ for $23 each this year
Excel format! Please show calculations, it is important! Thank you!
PROBLEM # 1
ABC Co. purchased 1,000 shares of XYZ for $23 each this year and classified the investment as a trading security. ABC sold 400 shares of the stock for $24 each. At year end the price per share of the XYZ Company had increased to $26.
Instructions
Prepare the journal entries for these transactions and any year-end adjustments.
PROBLEM # 2
On January 1, 2017, LabTech Inc. purchased 40% of the common shares of UnderTech Company for $280,000. During the year, UnderTech earned net income of $140,000 and paid dividends of $34,000.
Instructions
Prepare the entries for LabTech to record the purchase and any additional entries related to this investment in UnderTech Company in 2017.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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Step: 2
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Step: 3
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