Ex. 190
On January 1, Lance Corporation purchased a 30% equity in Sloan Company for $140,000. At December 31, Sloan declared and paid a $40,000 cash dividend and reported net income of $100,000.
Instructions
Prepare the necessary journal entries for Lance Corporation.
Ex. 191
Information pertaining to long-term share investments in 2014 by Tate Corporation follows:
Acquired 10% of the 250,000 ordinary shares of of Barkly Company at a total cost of $8 per share on January 1, 2014. On July 1, Barkly Company declared and paid a cash dividend of $2 per share. On December 31, Barkly's reported net income was $654,000 for the year.
Obtained significant influence over Tolan Company by buying 25% of Tolan's 100,000 outstanding shares at a total cost of $22 per share on January 1, 2014. On June 15, Tolan Company declared and paid a cash dividend of $1.50 per share. On December 31, Tolan's reported net income was $280,000.
Instructions
Prepare all necessary journal entries for 2014 for Tate Corporation.
Ex. 192
On February 1, Milo Company purchased 1,000 ordinary shares (2% ownership) of Werth Company for $32 per share. On March 20, Milo Company sold 200 shares of Werth for $5,800, Milo received a dividend of $1.00 per share on April 25. On June 15, Milo sold 300 shares of Werth for $10,200.
Instructions
Prepare the journal entries to record the transactions described above.