Answered step by step
Verified Expert Solution
Question
1 Approved Answer
!!!!!!!!!!!!!!!!! PLEASE ANSWER ALL PARTS !!!!!!!!!!!!!!!!!!!!!!!! Outdoor Adventure Company's Alice and Zed Warren are pleased with the growth of their business and have decided to
!!!!!!!!!!!!!!!!! PLEASE ANSWER ALL PARTS !!!!!!!!!!!!!!!!!!!!!!!!
Outdoor Adventure Company's Alice and Zed Warren are pleased with the growth of their business and have decided to invest its temporary excess cash in a brokerage account. The company had the following securities transactions in 2019. (Click the icon to view the securities transactions.) 1. Journalize the transactions including any entries, if required, at December 31, 2019. 2. Determine the effect on Outdoor Adventure Company's net income for the year for each of the three investments. July 1 Purchased 13,000 shares in Axle Outdoor Adventure Company for $4 per share. Outdoor Adventure does not have significant influence over Axle. Purchased 35% of the stock of Bentley Backpacks consisting of 52,500 shares of stock (out of a total of 150,000 shares) for $9 per share. Outdoor Adventure does have significant influence over Bentley 10 Purchased a bond from Camden Canoes with a face value of $50,000. Outdoor Adventure intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Sep 30 Received dividends of $0.40 per share from Axle. Nov. 1 Received dividends of $0.10 per share from Bentley Dec. 31 Received an interest payment of $1,000 from Camden Canoes. 31 Bentley Backpacks reported net income of $60,000 for the year 31 Adjusted the Axle stock for a market value of $3.87 per shareStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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