Hello! Can you please help me to understand the 2 questions in the attached document (21 and 22)? I am struggling with them. I have also attached the blank entry for reference Thank you so much in advance for your assistance!
Question 21: 20 points + a. General Journal Entries b. Partial Classified Balance Sheet Date Account Debit CreditQuestion 22: 4 points a. General Journal Entries Date Account Debit Credit b. Stock Investments Accounts Balance 12/31/19:Question 22 (4 points) On January 1, 2019, Post Company purchased 40,000 shares of the stock of Malone Co, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $300,000, and represents a 35% ownership stake. Malone made $100,000 of net income in 2019, and paid dividends of $30,000. The price of Malone's stock increased from $7.50 per share at the beginning of the year, to $10 per share at the end of the year. Requirements: a. Prepare the January 1 and December 31 general journal entries for Post Company. b. How much should the Post Company report on the balance sheet for the investment in Malone at the end of 2019? Omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines, and double-underlines where required. Question 21 (20 points) On January 1, 2019, Ziggy Corp. had the following balances (all balances are normal): Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares . uthorized, 6,000 shares issued and outstanding) Common Stock ($5 par value, 200,000 shares authorized, 100,000 hares issued and outstanding) Paid-in Capital in Excess of par, Common Retained Earnings The following events occurred during 2019: a. On January 1, Ziggy Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $13 per share. Stock dividends were distributed on January 31 to shareholders as of January 25. b. On February 15, Ziggy Corp. reacquired 1000 shares of common stock for $13.50 each. c. On March 31, Ziggy Corp. reissued 250 shares of treasury stock for $17 each. d. On July 1, Ziggy Corp. reissued 250 shares of treasury stock for $12 each. e. On October 1, Ziggy Corp. declared full year dividends for preferred stock and a. On January 1, Ziggy Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $13 per share. Stock dividends were distributed on January 31 to shareholders as of January 25. b. On February 15, Ziggy Corp. reacquired 1000 shares of common stock for $13.50 each. c. On March 31, Ziggy Corp. reissued 250 shares of treasury stock for $17 each. d. On July 1, Ziggy Corp. reissued 250 shares of treasury stock for $12 each. e. On October 1, Ziggy Corp. declared full year dividends for preferred stock and $2.00 cash dividends for outstanding shares and paid shareholders on October 15. f. On December 15, Ziggy Corp. split common stock 2 shares for 1. g. Net Income for 2019 was $300,000. Requirements: a. Prepare journal entries for the transactions listed above. b. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2019 (after taking into consideration your journal entries)
