Prepare the journal entries for each of these transactions Show how the long-term investment and...
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Accounting
Prepare the journal entries for each of these transactions
Show how the long-term investment and the related revenue should be reported on the current year's financial statements (balance sheet and income statement) of the Gioia Company.
Gioia Company acquired some of the 72,000 shares of outstanding common stock (no par) of Tristezza Corporation during the current year as a long-term investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the current year: Jan. 10 Dec. Purchased 18,875 shares of Tristezza common stock at $18 per share. 31 a. Received the current year financial statements of Tristezza Corporation that reported net income of $89,000. b. Tristezza Corporation declared a cash dividend of $0.6 per share. c. Tristezza Corporation paid the cash dividend declared in (b). d. Determined the market price of Tristezza stock to be $17 per share. GIOIA COMPANY Balance Sheet (partial) At December 31, Current Year Long-term investments: GIOIA COMPANY Income Statement (partial) For the Current Year Ended December 31
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