Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the...
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Accounting
Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last several years. Fast Track provided data including the following:
20X2
20X3
20X4
20X5
Net Income
$
43,000
$
60,000
$
43,000
$
53,000
Dividends
23,000
23,000
13,000
23,000
Fast Track declares and pays its annual dividend on November 25 each year. Its net book value on January 1, 20X2, was $254,000. Idle purchased shares of Fast Track on three occasions:
Date
Percent of Ownership Purchased
Amount Paid
January 1, 20X2
15
%
$
38,100
July 1, 20X3
10
30,480
January 1, 20X5
19
82,042
Required: Give the journal entries to be recorded on Idles books in 20X5 related to its investment in Fast Track. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
B Record the purchase of Fast Track stock.
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