Question
Givens: 1. On 1/1/16 the Frodo Company purchased 100 of the 1000 shares of Bilbo Company at $35 per share. Frodo has no influence over
Givens:
1. On 1/1/16 the Frodo Company purchased 100 of the 1000 shares of Bilbo Company at $35 per share. Frodo has no influence over Bilbo and uses available for sale
2. On 1/2/2016 Frodo Company purchases 400 of the 1000 shares of Gandoff Company for $40,000. Gandoff's balance sheet shows assets of $100,000 and liabilities of $20,000. Any excess of purchase price is attributable to a wand with a 5 year life and no salvage value.
3. On 7/1/2016 Bilbo Company announced and paid a $1 per share dividend.
4. On 8/1/2016 Gandoff Company declared and paid a $2 per share dividend.
5. On 12/31/ 2016 Bilbo Company reported income of $9000; its stock was selling at $37 per share
6. On 12/31/2016 Gandoff Company reported income of $22,000 and its stock is selling for $98 per share.
7. On 1/2/2017 Frodo purchased another 150 shares of Bilbo Company at $37 per share. With this new purchase Frodo now has influence over Bilbo. Any excess of purchase price over book value is attributable to goodwill
8. On 1/4/2017 Frodo sold 300 shares of Gandoff at $96 per share. With this sale, Frodo no longer has influence over Gandoff
9. On 7/1/2017 Bilbo announced and paid a $1 per share dividend
10. On 8/1/2017 Gandoff announced and paid a $1 per share dividend
11. On 12/31/2017 Bilbo reported a loss of $2000 and Bilbo's stock was selling at $33 per share
12. On 12/31/2017 Gandoff reported a profit of $4000 and its stock was selling at $97 per share
13. On 1/4/2018 Frodo sold all of its stock in Bilbo at $38 per share
14. On 1/5/2018 Frodo sold all of its stock in Gandoff at $98 per share
REQUIRED: MAKE ALL NECESSARY JOURNAL ENTRIES FOR FRODO CONNECTED WITH THESE 2 INVESTMENTS IN: 2016, 2017 AND 2018
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