Ivanhoe Tables acquired 15% of the 4,700,000 shares of common stock of Robot Sofas at...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Ivanhoe Tables acquired 15% of the 4,700,000 shares of common stock of Robot Sofas at a total cost of $8.90 per share on April 1 , 2020. On August 8, Robot Sofas declared and paid a $238,000 cash dividend. On December 31 , Robot Sofas market price was $9 per share and the company reported net income of $710,000 for the year. The securities are classified as available-for-sale. Situation 2 On January 1, 2020, Shamrock Company purchased 40% of Santos Corporation 480,000 outstanding shares of common stock at a total cost of $14 per share. On October 25 , Santos declared and paid a cash dividend of $0.40 per share. On December 31 , Santos reported a net income of $809,000 for the year and the market price of its common stock was $15 per share. Prepare all necessary journal entries in 2020 for both situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Situation 1: Ivanhoe Tables Situation 2: Shamrock Company
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
