Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock Investments. During 2016, Stockman Company began investing in the common stock of other companies. Journalize the following activities using the appropriate account titles. For

Stock Investments. During 2016, Stockman Company began investing in the common stock of other companies. Journalize the following activities using the appropriate account titles. For any accounts that would affect the income statement, indicate (I/S) next to the account title; for any accounts that would affect Other Comprehensive Income indicate (OCI) next to the account title.

1. In January, Stockman purchased 4,000 shares of the outstanding stock of Edgar Company (this represented a 40% investment in Edgar Company) at a price of $18 per share.

2. In February, Stockman purchased 1,000 shares of the outstanding stock of Archer Company for $12 per share. This investment was classified as Available-for-sale.

3. In March, Stockman purchased 2,000 shares of the outstanding stock of Turner Company for $20 per share. This investment was classified as a Trading investment.

4. In April, Edgar Company declared and paid a total cash dividend of $30,000 to its owners.

5. In May, Archer Company paid a $1 per share dividend to its owners.

6. On December 31, each of these companies reported net income to their owners in the following amounts:

Edgar, $80,000 net income

Archer, $50,000 net income

Turner, $100,000 net income

7. At December 31, the following per share amounts were reported for each of Stockmans investments:

Edgar Company $25 per share

Archer Company $16 per share

Turner Company $18 per share

**I have already completed 1-5, if you could answer 6-7 it would be greatly appreciated :-) **

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audits Of 401k Plans

Authors: Deloitte And Touche

2nd Edition

1119722039, 978-1119722038

More Books

Students also viewed these Accounting questions

Question

define what is meant by the term human resource management

Answered: 1 week ago