Question

On January 2, 2016, Sanborn Tobacco inc bought 10% of Jackson Industry's capital stock for $102 million as a temporary Investment. Sanborn classified the securtes acquired as avalable-for-sale. Jackson Industrys net Income for the year ended December 31, 2016, was $132 million. The fair value of the shares held by Sanborn was $122 million at December 31, 2016 During 2016. Jackson declared a dvidend of $72 milion. Required: 1 Prepare all appropriate journal entries related to the Investment durtng 2016. Off no entry is required for a transacton/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (le., 5,500,000 should be entered as 5.51) View transaction Bst Journal entry worksheet Record the purchase of Jackson Industry capital stock for $102. Note: Enter dobts beioro credits Event Rocord entry 2 Indicare the efect of this inestmet on 2018 incore defore texes. (Enter your answer in millions roundeo to 1 oecimai place lile 5.500.000 shouild be entered as 5.5 revenue

Answer 1

AutoSave Chegg workings - Excel Radhika Chandak Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Share Cut Calibri et wrap Text General Copy в , u. ±. 스.a--三一 Conditional Format as Cell FormattingTable Styles' Insert Delete Format -Merge & Center. $. % , +0+ Sort & Find & Filter Select . Clear. Format Painter Clipboard Alignment Cells Editing RENEW YOUR SUBSCRIPTION To keep using your Office applications without interruption, please renew by Friday, March 9, 2018. Buy Rei Me Later Particulars Debit Credit Effect of this investment on income Sanborn Tobacco Statement of comprehensive earnings Date 2-Jan-16 Available for sale securit 102 102 To Cash Purchase of Jackson Industry Stock for 102 mn Particulars In million 31-Dec-16 Available for sale securit 13.2 To Unrealized Gain/Loss OCI (Jackson Industry's net income $132 million 10% share) Dividend Income Net Income Unrealised Gain OCI Comprehensive Income 7.2 7.2 20 27.2 13.2 10 31-Dec-16 Dividend Receivable A/C 7.2 To Dividend income 7.2 (Dividend income $72 million+10% share) 1-Dec-16 Available for sale security 6.8 To Unrealized Gain/Loss OCI Being fair value adjustment done 16 6.8 20 Sheet3 Sheet4 Sheet5 Sheet6 Sheet7 Sheet8 Sheet9 Sheet31 Sheet32 Sheet33 厤E匹- + 100% 8:47 AMM 3/8/2018