Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Kramer Corporation had the following long-term investment transactions

Kramer Corporation had the following long-term investment transactions

 Kramer Corporation had the following long-term investment transactions.

 

Jan. 2

Purchased 5,000 shares of Optic, Inc. for $42 per share plus $7,000 in fees and commission. These shares represent a 35% ownership of Optic.

Oct. 15

Received Optic, Inc. cash dividend of $2 per share.

Dec. 31

Optic reported a net loss of $66,000 for the year.

 

Prepare the journal entries Kramer Corporation should record for these transactions and events.

 

 

 

152. Savan Co. purchased 14,000 shares of Briton Corporation's 40,000 shares of common stock on December 31, 2012. This represented 35% of Briton's outstanding shares and gave Savan Co. significant influence over Briton's management and operations. On October 11, 2013, Briton declared and paid cash dividends of $30,000. On December 31, 2013, Briton reported net income of $125,000 for the year. Prepare the journal entries Savan Co. should record to account for its investment in Briton Corporation during 2013.

 

 

 

153. On January 1, 2012, Frederich Corporation purchased 7,500 shares of Sport Tech, Inc. as a long-term investment for a total of $235,000. The 7,500 shares represent 30% of the outstanding (25,000) shares of Sport Tech. Prepare the journal entries for Frederich to record the following transactions and events:

 

 

December 31, 2012

Sport Tech reported net income of $66,000 for 2009.

February 1, 2013

Sold 1,875 of the Sport Tech shares for $34 per share. In addition, $1,350 in fees and commissions were paid by Frederich on this sale.

November 1, 2013

Frederich received a $0.90 per share cash dividend from Sport Tech.

December 31, 2013

Sport Tech reported net income of $146,000 for 2010

 

 

 

 

154. Rhone Importers purchases automotive parts from Germany. Prepare journal entries for the following transactions of Rhone.

 

Oct 1

Purchased inventory from Weimar Co for 12,000 euros, terms n/30. The exchange rate was $1.15 per euro.

Oct. 30

Paid Weimar Co. for the October 1 purchase. The exchange rate was $1.13 per euro

 

 

 

 

 

 

 

 

 

 

155. Golden Age Co. exports Native American artwork to Japan. Prepare journal entries for the following transactions.

 

Nov 10

Sold artwork to Tanaka Company for 10,000,000 yen, terms n/30. The exchange rate was $0.0084 per yen.

Dec 5

Received payment from Tanaka Company for the November 10 sale. The exchange rate was $0.009 per yen.

Jan 28 2020 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions