Question
On January 1, Tarjee Corporation, a publicly traded company, purchased 25% of Hook Ltd. common shares for $871,000. At December 26, Hook declared a $37,000
On January 1, Tarjee Corporation, a publicly traded company, purchased 25% of Hook Ltd. common shares for $871,000. At December 26, Hook declared a $37,000 dividend (Tarjee received its share of that dividend on the same day) and reported net income of $85,000. The shares fair value at December 31 was $914,000. Assume that Tarjee Corporation is a private company and reports under ASPE. It has chosen to account for its investment in Hook Ltd. using the cost model because the shares do not trade in an active market. Record each of the transactions and any necessary adjusting journal entries under this assumption. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
choose a transaction date Jan. 1Dec. 26 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount | |
choose a transaction date Jan. 1Dec. 26 | enter an account title | enter a debit amount | enter a credit amount |
enter an account title | enter a debit amount | enter a credit amount |
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