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On January 1st 2023, Homer Company purchased 100 of the 1000 shares of Bart Company at $42 per share. With this purchase Homer has no
On January 1st 2023, Homer Company purchased 100 of the 1000 shares of Bart Company at $42 per share. With this purchase Homer has no influence over Bart. On July 1 st 2023 Bart Company paid a $1 per share dividend On December 31st 2023 Bart Company reported income of $2300 and its stock was selling for $43 per share. On January 3rd 2024, Homer Company purchased an additional 200 shares of Bart Company at $43 per share. With this purchase, Homer was able to put Marge on the Bart Company Board of Directors and thus has some influence over Bart. On January 3rd 2024, the book value of Bart's assets equaled their fair market value except for a truck. This truck had a fair market value of $23000 and a book value of $18000. This truck is expected to last 10 years and Bart uses straight line depreciation. On July 1 st 2024 Bart Company paid a $1 per share dividend On December 31st 2024 Bart Company reported income of $2800 and its stock was selling for $44 per share On July 1st 2025 Bart Company announced it was not paying a dividend in 2025 On December 1st 2025 Bart Company reported a loss of 1100 and its stock was selling for $41 per share On January 11th 2026 Homer Company sold all of its stock in Bart Company at $41.50 per share. REQUIRED: 1) MAKE ALL THE JOURNAL ENTRIES HOMER MAKES IN ITS CONNECTION WITH BART COMPANY BEGINNING WITH THE PURHASE OF THE STOCK IN 2023 2) FILL OUT THE FOLLOWING TABLE Value of Bart's stock on Homer's books (12/31 of each year 2023 2024 2025 2026 Income impact of Homer's ownership of Bart's stock
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