On February 1, Rinehart Company purchased 500 shares (2% ownership ) of Givens company common stock for $32 per shares. On March 20, Rinehart Company sold 100 shares of Givens stock for $2,900. Rinehart received a divided of $1.00 per share on April 25. On June 15, Rinehart sold 200 shares of Givens stock for $7,600. On July 28, Rinehart received a divided of $1.25 per shares.
Instructions
Prepare the journal entries to record the transactions described above.
On January 1, Zabel Corporation purchased a 25% equity in Helbert corporation for $180,000. At December 31, Helbert declared and paid a $60,000 cash dividend and reported net income of $200,000.
Instructions
- Journalize the transactions.
- Determine the amount to be reported as an investment in Helbert stock at December 31.
Presented below are two independent situations.
- Gambino Cosmetics acquired 10% of the 200,000 shares of common stock of Nevins Fashion at a total cost of $13 per share on March 18, 2020. On June 30, Nevins declared and paid a $60,000 dividend. On December 31, Nevins reported net income of $122,000 for the year. At December 31, the market price of Nevins Fashion was $15 per share. The stock is classified as available-for-sale
- Kanza, Inc., obtained significant influence over Rogan Corporation by buying 40% of Rogan's 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2020. On June 15, Rogan declared and paid a cash dividend of $30,000. On December 31, Rogan reported a net income of $80,000 for the year.
Agee Company purchased 70% of the outstanding common stock of Himes Corporations.
At December 31, 2019, the trading securities for storrer; Inc. are as follows.
Data for investments in stock classified as trading securities are presented in E 16-10. Assume instead that the investments are classified as available-for-sale securities. The have the same cost and fair value. The securities are considered to be a long-term investment.