Question

On 2/1/17, Wall Corporation purchased 30,000 shares of ABC Company for $15 each. This investment represented...

On 2/1/17, Wall Corporation purchased 30,000 shares of ABC Company for $15 each. This investment represented 25% of the outstanding common stock of ABC, and Wall intends to hold the investment for at least a year. On 10/1/17, Wall received dividends of $1.20 per share. ABC’s net income for 2017 was $400,000, and the market value of ABC stock at 12/31/17 was $16 per share. Make all journal entries required by Wall in 2017.

0 0
Add a comment Improve this question Transcribed image text
Answer #1


os noswer Journal entries particulars Date required by wall Amt (Dr) Amt cor) 112500 112500 21112017 | stock investment al .are Note: for 3 ( to record the sale) All the shares available for [assume the sale. entry

Add a comment
Know the answer?
Add Answer to:
On 2/1/17, Wall Corporation purchased 30,000 shares of ABC Company for $15 each. This investment represented...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN...

    1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY 3. ABC COMPANY PURCHASED 5,000 SHARES OF ITS OWN COMMON STOCK FOR ITS TREASURY. THE PAR VALUE IS $3/SH AND THE SELLING PRICE IS $100/SH BASED ON 3. ABOVE, ABC COMPANY SOLD 1,000 SHARES OF ITS TREASURY STOCK FOR $102/SH 5. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK FOR CASH. PV IS $3/SH AND THE SELLING PRICE IS $99/SH 6....

  • On January 1, 2019, Pearl Corporation purchased 30,000 of the 75,000 outstanding common shares of M....

    On January 1, 2019, Pearl Corporation purchased 30,000 of the 75,000 outstanding common shares of M. Krab Corporation for $24 per share cash. During the year, M. Krab Corporation paid $1.50 per share cash dividends and reported $880,000 of net income. At the end of 2019, the M. Krab Corporation common stock is selling at $29 per share. Pearl Corporation must use the equity method to account for this investment. Why? We were unable to transcribe this imageOn January 1,...

  • ABC Corporation purchased 25,000 shares of common stock of the Davison Corporation for $40 per share...

    ABC Corporation purchased 25,000 shares of common stock of the Davison Corporation for $40 per share on January 2, 2018 (EQUITY METHOD). Davison Corporation had 100,000 shares of common stock outstanding during 2018, paid cash dividends of $150,000 during 2018, and reported net income of $500,000 for 2018. ABC Corporation should report revenue from investment for 2018 in the amount of ________.

  • 1. Cullumber Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Cullumber does not...

    1. Cullumber Corporation purchased 400 shares of Sherman Inc. common stock for $14,100 (Cullumber does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. Assume the stock is nonmarketable. Prepare Cullumber’s journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) 2. On January 1, 2017, Metlock Corporation purchased 40% of the common...

  • 3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation...

    3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation for $50,000 and 50,000 Shares (35%) of Energy Power Drink Inc. for $80,000 both long term investments. On December 31, 2018 Training Camp declared $1 dividend payment per share, and Energy Power Drink Inc. report its Net Income as $55,000 and paid $0.50 per share dividend payment. At year end December 31, 2018 Training Camp Corporation shares are trading at $2.50 per share, whereas...

  • 3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation...

    3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation for $50,000 and 50,000 Shares (35%) of Energy Power Drink Inc. for $80,000 both as long term investments. On December 31, 2018 Training Camp declared Si dividend payment per share, and Energy Power Drink Inc. report its Net Income as $55,000 and paid $0.50 per share dividend payment At year end December 31, 2018 Training Camp Corporation shares are trading at $2.50 per share,...

  • 3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation...

    3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation for $50,000 and 50,000 Shares (35%) of Energy Power Drink Inc. for $80,000 both as long term investments. On December 31, 2018 Training Camp declared $1 dividend payment per share, and Energy Power Drink Inc. report its Net Income as $55,000 and paid $0.50 per share dividend payment. At year end December 31, 2018 Training Camp Corporation shares are trading at $2.50 per share,...

  • Page Break 3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training...

    Page Break 3. On January 1, 2018 Big Basket Corporation purchased 30,000 shares (5%) of Training Camp Corporation for $50,000 and 50,000 Shares (35%) of Energy Power Drink Inc. for $80,000 both as long term investments. On December 31, 2018 Training Camp declared $1 dividend payment per share, and Energy Power Drink Inc. report its Net Income as $55,000 and paid $0.50 per share dividend payment. At year end December 31, 2018 Training Camp Corporation shares are trading at $2.50...

  • Jackson Company engaged in the following investment transactions during the current year. Feb. 17 Purchased 590...

    Jackson Company engaged in the following investment transactions during the current year. Feb. 17 Purchased 590 shares of Medical Company common stock for $20 per share plus a brokerage commission of $100. Jackson does not have significant influence over Medical. April 1 Bought 39,000 of the 100,000 outstanding shares of Olde Company for $390,000. Goodwill of $89,000 was included in the price. June 25 Received a $1.20 per share dividend on Medical Company stock. June 30 Olde Company reported second-quarter...

  • Wildhorse Corporation purchased 34000 shares of common stock of the Sherman Corporation for $49 per share on January 2, 2017

    Wildhorse Corporation purchased 34000 shares of common stock of the Sherman Corporation for $49 per share on January 2, 2017. Sherman Corporation had 100000 shares of common stock outstanding during 2018, paid cash dividends of $159000 during 2018, and reported net income of $590000 for 2018.  Wildhorse Corporation should report revenue from investment for 2018 in the amount of$220660 $146540$54060 $200600

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT