Question
Sunshine Inc. has the following transactions pertaining to the common stock. Jan. 1 Bought 40% of Sealand 60,000 outstanding shares of common stock at a
Sunshine Inc. has the following transactions pertaining to the common stock.
Jan. 1 Bought 40% of Sealand’ 60,000 outstanding shares of common stock at a cost of $12 per share, obtaining significant influence over Sealand Corp
April 15 Sealand declared and paid a cash dividend of $45,000. May 18 Acquired 5% of the 400,000 shares of common stock of Bluewater Corp. at a total cost of $6 per share
June 1 Purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400.
July 1 Sold 100 shares of Youngstock for $3,300, less a $50 brokerage fee.
Aug.30 Bluewater declared and paid a $75,000 dividend.
Oct.1 Received a dividend of $1.25 per share of Young Company.
Dec.31 Bluewater Corp. reported net income of $244,000 for the year
Dec.31 Sealand reported net income of $120,000 for the year
At December 31, the market price of Bluewater Corp was $13 per share and the Young
Company was $ 25. The stock is classified as trading securities Required: Prepare the journal entries for Sunshine Inc. for 2020
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