N&G Potato Chip Company, a U.S. GAAP reporter, provides you with the following information regarding its investments in equity securities during the current year. A (Click the icon to view the investment information.) Requirement Prepare all journal entries necessary to record N&G's investment transactions for the year. Show all computations. %3 More info January 1 (Beginning Balance: No entry required) N&G is currently holding 8,600 of Loyal Corporation common shares (publicly traded). The Loyal shares cost $23 per share. There is a debit balance of $34,400 in the fair value adjustment account. N&G does not have a significant influence over the investee. January 23 N&G purchased 1,100 shares of Troy Company common stock for $151 per share. Troy Company is publicly traded. N&G does not have a significant influence over the investee. February 4 N&G acquired 140,000 of the 400,000 outstanding shares of Drudge, Inc. for a total cost of $1,092,000. Loyal Corporation paid a $3.60 per share cash dividend. March 23 June 30 Drudge, Inc. reported $1,540,000 in net income for the year. Drudge also declared and paid a cash dividend of $2.50 per share. N&G purchased 320 bonds of the Cromer Ralph Group (CRG) at S900 par and intends to hold the debt investment to maturity. October 15 December 31 N&G accrued interest on the CRG bonds amounted to S36.000
N&G Potato Chip Company, a U.S. GAAP reporter, provides you with the following information regarding its investments in equity securities during the current year. A (Click the icon to view the investment information.) Requirement Prepare all journal entries necessary to record N&G's investment transactions for the year. Show all computations. %3 More info January 1 (Beginning Balance: No entry required) N&G is currently holding 8,600 of Loyal Corporation common shares (publicly traded). The Loyal shares cost $23 per share. There is a debit balance of $34,400 in the fair value adjustment account. N&G does not have a significant influence over the investee. January 23 N&G purchased 1,100 shares of Troy Company common stock for $151 per share. Troy Company is publicly traded. N&G does not have a significant influence over the investee. February 4 N&G acquired 140,000 of the 400,000 outstanding shares of Drudge, Inc. for a total cost of $1,092,000. Loyal Corporation paid a $3.60 per share cash dividend. March 23 June 30 Drudge, Inc. reported $1,540,000 in net income for the year. Drudge also declared and paid a cash dividend of $2.50 per share. N&G purchased 320 bonds of the Cromer Ralph Group (CRG) at S900 par and intends to hold the debt investment to maturity. October 15 December 31 N&G accrued interest on the CRG bonds amounted to S36.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:N&G Potato Chip Company, a U.S. GAAP reporter, provides you with the following information regarding its investments in equity securities during the current year.
A (Click the icon to view the investment information.)
Requirement
Prepare all journal entries necessary to record N&G's investment transactions for the year. Show all computations.
More info
January 1 (Beginning
Balance: No entry
required)
N&G is currently holding 8,600 of Loyal Corporation
common shares (publicly traded). The Loyal shares
cost $23 per share. There is a debit balance of
$34,400 in the fair value adjustment account. N&G
does not have a significant influence over the investee.
N&G purchased 1,100 shares of Troy Company
common stock for $151 per share. Troy Company is
publicly traded. N&G does not have a significant
January 23
influence over the investee.
February 4
N&G acquired 140,000 of the 400,000 outstanding
shares of Drudge, Inc. for a total cost of $1,092,000.
Loyal Corporation paid a $3.60 per share cash
March 23
dividend.
June 30
Drudge, Inc. reported $1,540,000 in net income for the
year. Drudge also declared and paid a cash dividend of
$2.50 per share.
N&G purchased 320 bonds of the Cromer Ralph
Group (CRG) at $900 par and intends to hold the debt
investment to maturity.
October 15
December 31
N&G accrued interest on the CRG bonds amounted to
$36,000.
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