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On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $104 million. Jackson Industry's net income for the year ended December 31, 2024, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2024. During 2024, Jackson declared a dividend of $74 million. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $138 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the sale of stock on January 2, 2025 for $138 million. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal >

On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $104 million. Jackson Industry's net income for the year ended December 31, 2024, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2024. During 2024, Jackson declared a dividend of $74 million. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $138 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the sale of stock on January 2, 2025 for $138 million. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal >

FINANCIAL ACCOUNTING
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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On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $104 million. Jackson Industry's net income for the year ended December 31, 2024, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2024. During 2024, Jackson declared a dividend of $74 million. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $138 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the sale of stock on January 2, 2025 for $138 million. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal >
Transcribed Image Text:On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $104 million. Jackson Industry's net income for the year ended December 31, 2024, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2024. During 2024, Jackson declared a dividend of $74 million. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $138 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the sale of stock on January 2, 2025 for $138 million. Note: Enter debits before credits. Transaction 2 Record entry General Journal Clear entry Debit Credit View general journal >
On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $104 million. Jackson Industry's net income for the year ended December 31, 2024, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2024. During 2024, Jackson declared a dividend of $74 million. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $138 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >
Transcribed Image Text:On January 2, 2024, Sanborn Tobacco Incorporated bought 10% of Jackson Industry's capital stock for $104 million. Jackson Industry's net income for the year ended December 31, 2024, was $134 million. The fair value of the shares held by Sanborn was $126 million at December 31, 2024. During 2024, Jackson declared a dividend of $74 million. Exercise 12-16 (Algo) Part 2 2. Assume that Sanborn sold the stock on January 2, 2025 for $138 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >
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