Horton Corporation purchased the following long-term investments in stock securities on January 10, 2005: 10,000 shares of the 100,000 outstanding common shares of Ellis Corporation for $400,000. 3,000 shares of the 10,000 outstanding common shares of Carey Company for $135,000. 6,000 shares of the 50,000 outstanding common shares of Jantz Company for $150,000. Other information: Dividends Per Share Net Income Declared and Fair Value for 2005 Paid in 2005 at 12/31/05 Ellis Corporation $ 90,000 50,000 $38 Carey Company 180,000 70,000 50 Jantz Company 50,000 20,000 23 Instructions Prepare the journal entries for Horton Corporation to record the acquisition of the long-term stock investments, the receipt of dividends, and any other necessary entries at year end on December 31, 2005. Assume that Horton Corporation's ownership interest in each company remained constant throughout the year.
Horton Corporation purchased the following long-term investments in stock securities on January 10, 2005:
10,000 shares of the 100,000 outstanding common shares of Ellis
Corporation for $400,000.
3,000 shares of the 10,000 outstanding common shares of Carey Company for $135,000.
6,000 shares of the 50,000 outstanding common shares of Jantz Company for $150,000.
Other information:
|
|
|
Dividends |
Per Share |
|
|
Net Income |
Declared and |
Fair Value |
|
|
for 2005 |
Paid in 2005 |
at 12/31/05 |
|
Ellis Corporation |
$ 90,000 |
50,000 |
$38 |
|
Carey Company |
180,000 |
70,000 |
50 |
|
Jantz Company |
50,000 |
20,000 |
23 |
Instructions
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