Question
On January 1st 2020 the Voldomort Company made the following 2 investments: a) purchased 100 of the 10,000 shares of Potter Company for $2000, at
On January 1st 2020 the Voldomort Company made the following 2 investments: |
a) purchased 100 of the 10,000 shares of Potter Company for $2000, at this time all of Potters assets had book values equal to market values |
Voldomort has no influence over Potter |
b) purchased 100 of the 300 shares of Hogwarts Company for $10,000 at this time all of Hogwarts assets had a book value equal to market |
value except a wand which had a book value of $300 and a fair market value of $1200. The wand has a 10 year life and no salvage |
Voldomort has placed his cousin Severus Snape on the board of directors of Hogwarts |
On July 1st Potter Company declared and paid a $1 per share dividend |
On October 1st Hogwarts Company declared and paid a $1 per share dividend |
On December 31st Potter Company's stock was selling for $22 per share and Potter reported income of $20,000 |
On December 31st Hogwarts stock was selling for $102 per share and Hogwarts reported income of $1500 |
On July 1st Potter Company declared and paid a $1 per share dividend |
On October 1st Hogwarts Company declared and paid a $1 per share dividend |
On December 1st Potter Company had a 2 for 1 stock split |
On December 31st Potter stock was selling for $10.25 per share and Potter reported a loss of $1000 |
On December 31st Hogwarts stock was selling for $99 per share and Hogwarts reported a loss of $400 |
On January 5th Voldomort sold 1/2 of his shares in Hogwarts Company at $99.50 per share and Hogwarts immediately removed Snape from its board of directors |
On July 1st Potter Company reported that they would not pay any dividends this year |
On December 1st Voldomort sold all of its shares in Potter Company at $10.50 per share |
On December 31st, Potter's stock was selling at $11.25 per share and Potter reported income of $4000 |
On December 31st Hogwarts stock was selling for $100 per share and Hogwarts reported income of $900 |
On January 2nd Voldomort sold all of its Hogwarts stock at $99.80 per share. |
A) MAKE ALL THE NECESSARY JOURNAL ENTRIES FOR VOLDOMORT CONNECTED WITH ITS INVESTMENT IN POTTER FOR 2020,2021 2022 |
B) MAKE ALL THE NECESSARY JOURNAL ENTRIES FOR VOLDOMORT CONNECTED WITH ITS INVESTMENT IN HOGWARTS FOR 2020,2021,2022 |
C FILL IN THE TABLE BELOW: |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started