Question
On January 1,2002,Alsop Corp. acquired 30,000 shares out of the 100,000 outstanding ordinary shares of Stone Services Inc.for 1,300,000 as a long as long-term investment.
On January 1,2002,Alsop Corp. acquired 30,000 shares out of the 100,000 outstanding ordinary shares of Stone Services Inc.for 1,300,000 as a long as long-term investment. Data from Stone 2002 financial statements include the following:
Profit 330,000
Less: Cash dividends Paid 160,000
Increase in retained earnings 170,000
The fair value of Stone Services Inc. Ordinary shares on December 31,2002, was 98 per share. Alsop Corp. Does not have any other non-current investments in securities.
Requirements: Prepare the necessary journal entries for Alsop's investment in Stone Services Inc. ordinary shares
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
