28. On March 1, Year 1, Chase Inc. purchases 35% of the outstanding shares of Glory Corporation stock for $325,000. On December 31, Year 1, Glory reports net income of $162,000. On January 15, Year 2, Glory pays total dividends to stockholders of $33,000.On 1/16-year 2 the stock is sold for $285,000 Journalize the fourtransactions.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Subjective Short Answer
27. On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest
of $20,000 ($500,000 x 8% x 1/2), receiving cash of $520,000. Journalize the entry to record the first interest
payment and amortization of premium using the straight-line method.and the sale of the bonds @99 after the first
interest payment
28. On March 1, Year 1, Chase Inc. purchases 35% of the outstanding shares of Glory Corporation stock for
$325,000. On December 31, Year 1, Glory reports net income of $162,000. On January 15, Year 2, Glory pays
total dividends to stockholders of $33,000.On 1/16-year 2 the stock is sold for $285,000
Journalize the fourtransactions.
29. On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For
the year ending December 31, McGuire earned income of $48,000 and paid dividends of $14,000.
Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends
received from McGuire.
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Transcribed Image Text:Subjective Short Answer 27. On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest of $20,000 ($500,000 x 8% x 1/2), receiving cash of $520,000. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.and the sale of the bonds @99 after the first interest payment 28. On March 1, Year 1, Chase Inc. purchases 35% of the outstanding shares of Glory Corporation stock for $325,000. On December 31, Year 1, Glory reports net income of $162,000. On January 15, Year 2, Glory pays total dividends to stockholders of $33,000.On 1/16-year 2 the stock is sold for $285,000 Journalize the fourtransactions. 29. On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending December 31, McGuire earned income of $48,000 and paid dividends of $14,000. Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income, and dividends received from McGuire. qage Learning. Powered by Cognero. Page 5
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