Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2015 the West Company made 2 purchases: purchased 400 of the 900 shares of Kardashian Company for $80,000. At this time the

On January 1, 2015 the West Company made 2 purchases:
purchased 400 of the 900 shares of Kardashian Company for $80,000. At this time the book value of Kardashian's asset = fair market value
except for a car with a book value of $10,000 and a fair market value of $19000. This car has a life of 5 years and no salvage.
purchased 100 of the 200,000 shares of Madona Company for $60,000. All of Madonna's assets had a book value equal to market value
any excess is attributable to goodwill
WHEN WEST DOESN'T HAVE INFLUENCE HE ALWAYS USES AVAILABLE FOR SALE TO ACCOUNT FOR STOCK INVESTMENTS
1-Jul Kardashian Company paid a $2 per share dividend
1-Aug Madonna Company paid a $4 per share dividend
31-Dec Kardashian Company reported income of $39000; its stock is selling for $211 per share
31-Dec Madonna Company reported income of $140,000; its stock is selling for $98 per share
2016
1-Jul Kardashian Company paid a $2 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 $13000; its stock is selling for $99 per share
31-Dec Madonna Company reported a loss of $40,000; its stock is selling for $211 per share
2017 January 5th West sold its entire investment in Kardashian for $100 per share
January 5th West sold its entire investment in Madonna for $202 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: John Hoggett, Lew Edwards, John Medlin, Keryn Chalmers, Jodie Maxfield, Andreas Hellmann, Claire Beattie

9th Edition

1118608208, 978-1118608203

More Books

Students also viewed these Accounting questions