Question
On January 1, 2015 the West Company made 2 purchases: purchased 300 of the 1000 shares of Kardashian Company for $30,000. At this time Kardashian
On January 1, 2015 the West Company made 2 purchases: purchased 300 of the 1000 shares of Kardashian Company for $30,000. At this time Kardashian book value of assets was $80,000 any excess is attributable to a car with a 5 year life and no salvage. purchased 300 of the 100,000 shares of Madona Company for $30,000. All of Madonna's assets had a book value equal to market value any excess is attributable to goodwill 1-Jul Kardashian Company paid a $2 per share dividend 1-Aug Madonna Company paid a $1 per share dividend 31-Dec Kardashian Company reported income of $9000; its stock is selling for $101 per share 31-Dec Madonna Company reported income of $100,000; its stock is selling for $98 per share 2016 1-Jul Kardashian Company paid a $1 per share dividend 1-Aug Madonna Company announced they would not be paying any dividends this year 31-Dec Kardashian Company reported a loss of $3000; its stock is selling for $96 per share 31-Dec Madonna Company reported a loss of $40,000; its stock is selling for $101 per share 2017 January 5th West sold its entire investment in Kardashian for $98 per share January 5th West sold its entire investment in Madonna for $102 per share REQUIRED: MAKE ALL JOURNAL ENTRIES WEST MAKES IN CONNECTION WITH ITS INVESTMENT IN KARDASHIAN AND MADONNA FOR 2015, 2016 AND 2017.DON'T FORGET TO RECORD WEST'S PURCHASE OF THE STOCK.
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