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Required information The following information applies to the questions displayed below.) Company T had 35,000 outstanding shares of common stock, par value $15 per share.
Required information The following information applies to the questions displayed below.) Company T had 35,000 outstanding shares of common stock, par value $15 per share. On January 1 of the current year, Company P purchased some of Company T's shares as a long-term investment at $26 per share. At the end of the current year, Company T reported the following: income, $54,000, and cash dividends declared during the year, $25,500. The fair value of Company T stock at the end of the current year was $23 per share. 2-a. Prepare the journal entries for Company P at the dates indicated assuming 5,600 shares of Company T were purchased. Assume the investment will be held long term. 2-b. Prepare the journal entries for Company P at the dates indicated assuming 13,300 shares of Company T were purchased. Assume the investment will be held long term. 3-a. Complete the following schedule to show the separate amounts that should be reported on the current year's balance sheet of Company P: 3-b. Complete the following schedule to show the separate amounts that should be reported on the current year's income statement of Company P: Prepare the journal entries for Company P at the dates indicated assuming 5,600 shares of Company T were purchased. Assume the investment will be held long term. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Credit Debit 145,600 Investments Cash 145,600 No journal entry required c1 Dividends receivable Dividend revenue Oo oo ooo Cash Dividends receivable 16,800 Unrealized loss Investments 16,800 Prepare the journal entries for Company P at the dates indicated assuming 13,300 shares of Company T were purchased. Assume the investment will be held long term. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Credit Debit 345,800 Investments Cash 345,800 Investments Equity in investee earnings 0 0 c1 0 Dividends receivable Interest revenue Cash 0 0 Dividends receivable No journal entry required 0
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