Question
Prior to 2021, Cottrell has invested in the following companie has invested in the following companies by purchasing small amounts of their common stock. Cottrell
- Prior to 2021, Cottrell has invested in the following companie has invested in the following companies by purchasing small amounts of their common stock. Cottrell did not purchase any additional stock in 2021. The company has no intentions to sell this stock in 2022. Make any entries needed for these investments in 2021.
Company | # Shares owned | % of total shares owned* | Cost per share when purchased | Current per share market price | Dividends received in 2021 per share | Company’s Net Income for 2021 |
Metcalf Industries | 100 | 5% | $20 | $29 | $2.00 | $1,500,000 |
RFJ Corporation | 120 | 8% | $15 | $12 | $0.75 | $620,000 |
Telstar Communications | 230 | Less than 1% | $60 | $48 | None | $27,000,000 |
Pro tech Company | 300 | 12% | $98 | $160 | None | $5,890,000 |
* This is the % of the total stock issued by the investee company that is owned by Cottrell
| Account Title | Debit | Credit | |
Step by Step Solution
3.42 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
EXPERT ANSWER ATTACHED IMAGE Note Company should record change Received In fair market value of ...
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
Financial ACCT2
Authors: Norman H. Godwin, C. Wayne Alderman
2nd edition
9781285632544, 1111530769, 1285632540, 978-1111530761
