Min Hyun Jing Ltd. purchased 21,600 common shares of Glastone Ltd. on January 1, 2018, when the market price was $27.50 per share. This gave Min Hyun Jing 12% of the shares issued by Glastone Ltd. Min Hyun Jing Ltd. has a December 31 year end. For the year ended December 31, 2018, Glastone reported net income of $260,000 and declared dividends of $1.10 per share on December 31. The trading price of Glastone’s shares on that date was $31.20. For the year ended December 31, 2019. Glastone reported net income of $280,000 and declared dividends of $1.15 per share on December 31. The trading price of Glastone’s shares on December 31 was 34.60. Min Hyun Jing Ltd. purchased an additional 20,000 common shares on this date. For the year ended December 31, 2020, Glastone reported a net loss of $80,000, but still declared dividends on December 31, in the amount of $0.75 per share. The trading price of Glastone’s shares on December 31, 2019 was $30.50 per share. For the year ended December 31, 2021, Glastone reported net income of $120,000, earned evenly throughout the year, as always. On March 31, 2021, Min Hyun Jing sold 25,000 common shares when the market price reached $35.00 per share. On December 31, 2021, Glastone paid dividends of $1.25 per share, and the market price of the shares at year end was $32.75 per share. Required: Using only the information available in the question, prepare all the necessary journal entries (in proper form) on the books of Min Hyun Jing for each year from the acquisition of the investment in 2018 to the end of December 2021. Support your journal entries with the appropriate calculations.
. Min Hyun Jing Ltd. purchased 21,600 common shares of Glastone Ltd. on January 1, 2018, when the market price was $27.50 per share. This gave Min Hyun Jing 12% of the shares issued by Glastone Ltd. Min Hyun Jing Ltd. has a December 31 year end.
For the year ended December 31, 2018, Glastone reported net income of $260,000 and declared dividends of $1.10 per share on December 31. The trading price of Glastone’s shares on that date was $31.20.
For the year ended December 31, 2019. Glastone reported net income of $280,000 and declared dividends of $1.15 per share on December 31. The trading price of Glastone’s shares on December 31 was 34.60. Min Hyun Jing Ltd. purchased an additional 20,000 common shares on this date.
For the year ended December 31, 2020, Glastone reported a net loss of $80,000, but still declared dividends on December 31, in the amount of $0.75 per share. The trading price of Glastone’s shares on December 31, 2019 was $30.50 per share.
For the year ended December 31, 2021, Glastone reported net income of $120,000, earned evenly throughout the year, as always. On March 31, 2021, Min Hyun Jing sold 25,000 common shares when the market price reached $35.00 per share. On December 31, 2021, Glastone paid dividends of $1.25 per share, and the market price of the shares at year end was $32.75 per share.
Required:
Using only the information available in the question, prepare all the necessary
Step by step
Solved in 2 steps
