Question
On January 1 2020 Potter Company purchased100 of the 1000 shares of Voldomort Company for $800. Potter has no significant influence over Voldomort. On July
On January 1 2020 Potter Company purchased100 of the 1000 shares of Voldomort Company for $800. Potter has no significant influence over Voldomort.
On July 1, 2020 Voldomort declared and paid a $1 per share dividend.
On December 31st Voldomort's stock was selling for $9 per share;Voldomort reported income of $4000.
On January 1 2021 Potter Company purchased 300 shares of Voldomort Company for $2700.Potter now has two seats on the Voldomort Board of Directors.
On March 1, Voldomort had a two for one stock split.
On July 1, Voldomort declared and paid a $1 per share dividend.
On December 31st Voldomort reported income of $5000 and its stock was selling for $7 per share.
On July 1, 2022Voldomort announced that it will not pay a dividend in 2022.
On December 31st Voldomort reported a loss of $2000 and its stock was selling for $5 per share.
On January 3rd 2023Potter sold all of its shares in Voldomort at $5.50 per share.
REQUIRED:
A) MAKE THE REQUIRED JOURNAL ENTRIES FOR POTTER CONNECTED WITH ITS OWNERSHIP OF VOLDOMORT STOCK IN
2020
2021
2022
2023
B) FILL IN THE FOLLOWING TABLE
Investment in Voldomort 2020 2021 2022
income from investment in Voldomort
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Microsoft Excel For Accounting The First Course
Authors: L Murphy Smith, Katherine Smith
1st Edition
0130085529, 978-0130085528
