Please use the data for the corresponding spreadsheet There are 2 tabs For Sheet 1 Black, Inc management occasionally invests idle cash in stocks that are not intended to be held long term Management treats these investments as trading securities 1 5 15Purchased 2,500 shares of Eversilver Corporation common stock, which constitutes less than 10 of the outstanding shares of the company for $54 00 per share cash plus a total broker commission of $200 6 15 15Received a cash dividend of $1 50 per share 12 15 15Received a cash dividend of $1 60 per share 12 31 15The market value of the stock is $60 per share as of year end, and a commission of $200 would apply to sell the shares 1 22 16Sold 1,000 shares of Eversilver Corporation common stock for $62 per share minus $120 commission Instructions Prepare journal entries for the above transactions For Sheet 2 White Corporation acquired 50,000 shares of the outstanding common stock of Gold Company for $12 00 per share The following events occurred during the year 6 15 15Gold declared and paid $0 50 per share cash dividend 12 10 15Gold declared and paid $0 55 per share cash dividend 12 31 15Gold reported net income for the year of $325,000 The market price of Gold common stock was $25 per share on the last day of the year Instructions Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted less than 10 of Gold's outstanding shares White treats this investment as available for sale securities Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted 30 of Gold's outstanding shares Date Account Title 1 5 2015 Account to debit Account to credit Debit Amount 7 15 2015 Account to debit Account to credit Amount 12 15 2015 Account to debit Account to credit Amount 12 31 2015 Account to debit Account to credit Amount 1 22 2016 Account to debit Account to credit Account to credit Amount Credit Amount Amount Amount Amount Amount Amount Less than 10 ownership Date Account Title 1 1 2015 Account to debit Account to credit Debit Amount Amount 6 15 2015 Account to debit Account to credit Amount 12 10 2015 Account to debit Account to credit Amount 12 31 2015 Account to debit Account to credit Amount 30 ownership Date Account Title 1 1 2015 Account to debit Account to credit Credit Amount Amount Amount Debit Amount Credit Amount 6 15 2015 Account to debit Account to credit Amount 12 10 2015 Account to debit Account to credit Amount 12 31 2015 Account to debit Account to credit Amount Amount Amount Amount

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Posted on Jun 28, 2024

Please use the data for the corresponding spreadsheet. There are 2 tabs. For Sheet 1 Black, Inc. management occasionally invests idle cash in stocks that

Please use the data for the corresponding spreadsheet. There are 2 tabs.

For Sheet 1

Black, Inc. management occasionally invests idle cash in stocks that are not intended to be held long term. Management treats these investments as trading securities.

1/5/15Purchased 2,500 shares of Eversilver Corporation common stock, which constitutes less than 10% of the outstanding shares of the company for $54.00 per share cash plus a total broker commission of $200.6/15/15Received a cash dividend of $1.50 per share.12/15/15Received a cash dividend of $1.60 per share.12/31/15The market value of the stock is $60 per share as of year end, and a commission of $200 would apply to sell the shares.1/22/16Sold 1,000 shares of Eversilver Corporation common stock for $62 per share minus $120 commission.Instructions: Prepare journal entries for the above transactions.

For Sheet 2

White Corporation acquired 50,000 shares of the outstanding common stock of Gold Company for $12.00 per share. The following events occurred during the year.

6/15/15Gold declared and paid $0.50 per share cash dividend.12/10/15Gold declared and paid $0.55 per share cash dividend.12/31/15Gold reported net income for the year of $325,000. The market price of Gold common stock was $25 per share on the last day of the year.Instructions:

Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted less than 10% of Gold's outstanding shares. White treats this investment as available-for-sale securities.
Prepare the journal entries for White in 2015, assuming that the purchase of Gold stock constituted 30% of Gold's outstanding shares.

Date Account Title 1/5/2015 Account to debit Account to credit Debit Amount 7/15/2015 Account to debit Account to credit Amount 12/15/2015 Account to debit Account to credit Amount 12/31/2015 Account to debit Account to credit Amount 1/22/2016 Account to debit Account to credit Account to credit Amount Credit Amount Amount Amount Amount Amount Amount Less than 10% ownership Date Account Title 1/1/2015 Account to debit Account to credit Debit Amount Amount 6/15/2015 Account to debit Account to credit Amount 12/10/2015 Account to debit Account to credit Amount 12/31/2015 Account to debit Account to credit Amount 30% ownership Date Account Title 1/1/2015 Account to debit Account to credit Credit Amount Amount Amount Debit Amount Credit Amount 6/15/2015 Account to debit Account to credit Amount 12/10/2015 Account to debit Account to credit Amount 12/31/2015 Account to debit Account to credit Amount Amount Amount Amount