On January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares of common stock at a cost of $35 per share. On July 15, Farley declared and paid a cash dividend of $1.50 per share. On December 31, Farley reported a net income of $2,860,000 for the year and the market price of its common stock was $42 per share. Prepare all journal entries for 2023.
On January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares of common stock at a cost of $35 per share. On July 15, Farley declared and paid a cash dividend of $1.50 per share. On December 31, Farley reported a net income of $2,860,000 for the year and the market price of its common stock was $42 per share. Prepare all journal entries for 2023.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2023, Evans Company purchased 40% of Farley Corporation’s 800,000 outstanding shares of
common stock at a cost of $35 per share. On July 15, Farley declared and paid a cash dividend of $1.50 per
share. On December 31, Farley reported a net income of $2,860,000 for the year and the market price of its
common stock was $42 per share.
Prepare all
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