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quired : Prepare the journal entries for Jack & Jill's Coffee Company will make during 2016 and 2017 to account for its investment in Columbia

quired:

Prepare the journal entries for Jack & Jill's Coffee Company will make during 2016 and 2017 to account for its investment in Columbia Coffee Bean Company.

Prepare workpaper eliminating entries necessary to prepare a consolidated statements workpaper on December 31, 2017.

Jack & Jill's Coffee Company purchased Columbia Coffee Bean Company common stock through open-market purchases as follows:

Acquired

Date Shares Cost

1/1/15 1,500 $ 50,000

1/1/16 3,300 $ 90,000

1/1/17 6,600 $250,000

Columbian Coffee Bean Company had 12,000 shares of $20 par value common stock outstanding during the entire period. Columbian Coffee Bean Company had the following retained earnings balances on the relevant dates:

January 1, 2015 $ 90,000

January 1, 2016 30,000

January 1, 2017 150,000

December 31, 2017 300,000

Columbian Coffee Bean Company declared no dividends in 2015 or 2016 but did declare and pay $60,000 of dividends in 2017. Jack & Jill's Coffee Company uses the equity method to account for its investment in Columbian Coffee Bean Company.

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