Question
On January 1, 2020, Dallas Company purchased 80,000 shares of WashingtonCompanys $10 par common stock for $42 per share. During 2020, Washington paid total dividends
On January 1, 2020, Dallas Company purchased 80,000 shares of WashingtonCompanys $10 par common stock for $42 per share. During 2020, Washington paid total dividends of $600,000 and reported net income of $900,000. Washington stock was trading for $44 per share on December 31, 2020. During 2021, Washington paid total dividends of $100,000 and reported net loss of $300,000. Washington stock was trading for $40 per share on December 31, 2021.
Instructions:
a. Prepare all necessary journal entries for 2020 and 2021 if Washington has 800,000 shares of common stock outstanding.
b. Prepare all necessary journal entries for 2019 and 2020 if Washington has 200,000 shares of common stock outstanding.
On January 1, 2020, Dallas Company purchased 80,000 shares of WashingtonCompanys $10 par common stock for $42 per share. During 2020, Washington paid total dividends of $600,000 and reported net income of $900,000. Washington stock was trading for $44 per share on December 31, 2020. During 2021, Washington paid total dividends of $100,000 and reported net loss of $300,000. Washington stock was trading for $40 per share on December 31, 2021.
Instructions:
a. Prepare all necessary journal entries for 2020 and 2021 if Washington has 800,000 shares of common stock outstanding.
b. Prepare all necessary journal entries for 2019 and 2020 if Washington has 200,000 shares of common stock outstanding.
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Managing Component Based Development In Global Teams
Authors: J. Kotlarsky, I. Oshri
2009 Edition
0230222447, 978-0230201101
