Question
Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2021, Marg Company purchased a block of these shares in the open
Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2021, Marg Company purchased a block of these shares in the open market at $30 per share. At the end of 2021, Lisa reported net income of $240,000 and cash dividends of $0.30 per share. At December 31, 2021, Lisa Company stock was selling at $28 per share. 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 15,000 shares purchased. 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case 8: 34,000 shares purchased. 3. Complete the following schedule to show the separate amounts that should be reported on the 2021 financial statements of Marg Company
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
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