Journalize the transactions.11. Jan. 1Purchase 40, $1,000 Carlos Company 8% bonds for $40,000. Interest is payable annually on January 1. (a) Journalize thetransactions, and (b) prepare the adjusting entry for the accrual of interest on December 31.12. Jan. 1 On January 1, 2022, Carlos Corporation acquires 1,000 shares (8% ownership) of Tele Corporation common stock at $20 per share.Journalize the purchase of shares.13. Reference question #12 above. If Carlos Corporation receives a $3 per share dividend on July 31, record the dividend revenue.114. Assume that Carlos Corporation receives a net proceeds of $39,000 on the sale of its Tele Corporation Stock on March 2023 (Question #12above). Record the sale of shares.15. Assume that Carlos Corporation acquires 40% of the common stock of Tele Company for $200,000 on January 1, 2022. Record thetransaction.16. For 2022, Tele Corporations reports net income of $100,000. It declares and pays a $$60,000 cash dividend. Journalize the revenue anddividends transactions (Ref: #15 above).17. Post to ledgers (use T-Accounts) for #15 and #16 above.

The cost method is used to record the equity investment when the company acquires less number of…

Journalize the transactions. 11. Jan, 1 Purchase 40, $1,000 Carlos Company 8% bonds for $40,000. Interest is payable annually on January 1. (a) Journalize the transactions, and (b) prepare the adjusting entry for the accrual of interest on December 31.

Journalize the transactions. 11. Jan, 1 Purchase 40, $1,000 Carlos Company 8% bonds for $40,000. Interest is payable annually on January 1. (a) Journalize the transactions, and (b) prepare the adjusting entry for the accrual of interest on December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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