Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The balance sheet of Eastern Developments Corp. at the start of the year included these balances: Short-term investments $ 265,000 Investments in significantly influenced and

image text in transcribed
image text in transcribed
The balance sheet of Eastern Developments Corp. at the start of the year included these balances: Short-term investments $ 265,000 Investments in significantly influenced and other companies 2,600,000 Assume the company completed the following investment transactions during 2020 (Click the icon to view list of transactions.) Required 0 Transactions M fage come M Mar 3 Purchased 9,500 common shares as a short-term investment, paying $28.00 per share, plus brokerage commission of $700. 4 Purchased additional shares in a company that is significantly influenced by Eastern Developments Corp. at a cost of $680,000, plus brokerage commission of $5,700 May 14 Received semi-annual cash dividend of $1.80 per share on the short-term investment purchased March 3. Jun. 15 Received cash dividend of $100,000 from a significantly influenced company. Aug. 28 Sold the short-term investment (purchased on March 3) for $25.50 per share, less brokerage commission of $750. Oct. 24 Purchased other short-term investments for $345.000, plus brokerage commission of $625. Dec. 15 Received a cash dividend of $70,000 from a significantly influenced company. 31 Received annual reports from significantly influenced companies. Their total net income for the year was $1.500,000. Of this amount. Eastern Developments Corp's proportion is 30 percent. Corp. at Hit M Print Done H Type here to search o e This Question: 15 pts 3 of 8 (4 complete) The balance sheet of Eastern Developments Corp. at the start of the year included these balances: Short-term investments 265,000 Investments in significantly influenced and other companies 2,600,000 Assume the company completed the following investment transactions during 2020 (Click the icon to view list of transactions.) Required Requirement 1. Record the transactions in the general journal of Eastern Developments Corp. Mar. 3. Purchased 9,500 common shares as a short-term investment, paying 528.00 per share, plus brokerage commission of $700 (Record debi Journal Entry Date Accounts Debit Credit 3 Mar. 4. Purchased additional shares in a company that is significantly influenced by Eastern Development Corp at a cost of 5680,000, plus brokera Journal Entry Date Accounts Debit Credit Mar 4 Choose from any list or enter any number in the input fields and then continue to the next question Type here to search O 11 E acer F2 F3 MO F6 F7 F5 Ole F9 z' F8 4 F10 1 %

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

Accounting Information System

Authors: James A. Hall

7th Edition

978-1439078570, 1439078572

More Books

Students also viewed these Accounting questions