Information pertaining to long-term stock investments in 2017 by Bell Corporation follows: Acquired 18% of the 250,000 shares of common stock of Kansas Company at a total cost of $8 per share on January 1, 2017. On July 1, Kansas Company declared and paid a cash dividend of $2 per share. On December 31, 's reported net income was $654,000 for the year. Obtained significant influence over Toto Company by buying 30% of Toto's 100,000 outstanding shares of common stock at a total cost of $22 per share on January 1, 2017. On June 15, Toto Company declared and paid a cash dividend of $1.50 per share. On December 31, Toto's reported net income was $280,000. Prepare all necessary journal entries for 2017 for Bell Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record purchase of Kansas Company stock) Jan. 1 (To record purchase of Toto Company stock) June 15 July 1 Dec. 31
Information pertaining to long-term stock investments in 2017 by Bell Corporation follows: Acquired 18% of the 250,000 shares of common stock of Kansas Company at a total cost of $8 per share on January 1, 2017. On July 1, Kansas Company declared and paid a cash dividend of $2 per share. On December 31, 's reported net income was $654,000 for the year. Obtained significant influence over Toto Company by buying 30% of Toto's 100,000 outstanding shares of common stock at a total cost of $22 per share on January 1, 2017. On June 15, Toto Company declared and paid a cash dividend of $1.50 per share. On December 31, Toto's reported net income was $280,000. Prepare all necessary journal entries for 2017 for Bell Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record purchase of Kansas Company stock) Jan. 1 (To record purchase of Toto Company stock) June 15 July 1 Dec. 31
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Information pertaining to long-term stock investments in 2017 by Bell Corporation follows:
Acquired 18% of the 250,000 shares of common stock of Kansas Company at a total cost of $8 per share on January 1, 2017. On July 1, Kansas Company declared and paid a cash dividend of $2 per share. On December 31, 's reported net income was $654,000 for the year.
Obtained significant influence over Toto Company by buying 30% of Toto's 100,000 outstanding shares of common stock at a total cost of $22 per share on January 1, 2017. On June 15, Toto Company declared and paid a cash dividend of $1.50 per share. On December 31, Toto's reported net income was $280,000.
Prepare all necessary
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Account Titles and Explanation
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Debit
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Jan. 1
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(To record purchase of Kansas Company stock)
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Jan. 1
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(To record purchase of Toto Company stock)
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June 15
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July 1
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Dec. 31
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