Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On October 1, 2021, The Dontfalemy Company made the following investments: 2,100 shares (10%) of the common stock of ABC Corp. for $2,100,000. 2% of

image text in transcribed
On October 1, 2021, The Dontfalemy Company made the following investments: 2,100 shares (10%) of the common stock of ABC Corp. for $2,100,000. 2% of the preferred stock of ABD, Inc, for $3,720,000. 5,140 shares (8%) of the common stock of The ABE Co. for $2,570,000. A30% interest in the ABF Corporation for $3,360,0003260,0003%123=25. On December 30,2021 , Dontfaiemy acquired 600 debentures of the ABG Company at their face value, to be heid to maturity. No entry As of December 31, 2021, Dontfalemy made adjusting journal entries for these investments, based on the following information. The market value of the investment in ABC Corp. is $2,650,000. The market value of the investment in ABD, Inc. is $3,590,000. The market value of the investment in The ABE Co. is $2,840,000. The market value of the investment in the ABF Corporation, which had net income for the year of $2,300,000, is $3,660,000. (Norhing to do ) le market value of the investment in the ABG Company debentures is 325,000 . Cash dividend payments received from the investments at December 31, 2021 totaled $288,000, with $121,000 of that amount coming from the ABF Corporation. The ABG Company will not make any interest payments until 2022. Prepare the journal entries that Donfalemy made for its investments at December 31 . 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Write a letter asking them to refund your $1,500 down payment.

Answered: 1 week ago