Prepare journal entries Condax Corp should prepare to account for its investment in Opentech Corp. and Donware Inc. On January 1, 2019, Condax Corp purchased 8,000 shares of Opentech Corp's common shares at $40. This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations. On October 11, 2019, Opentech declared and paid cash dividends of $30,000. On December 31, 2019, Opentech reported profit of $190,000 for the year. Also, January 2, Condax Purchased 5,000 shares of Donware, Inc. for $40 per share plus $6,195 in fees and commission. These shares represent only 1% ownership of Donware. 20 Donware declared a $1.50 per share cash dividend to shareholders of record on October 1, payable October 15. To Condax 15 Condax received Donware, Inc. cash dividend. 31 Donware reported $35 per share as its market value for the year end.
Prepare journal entries Condax Corp should prepare to account for its investment in Opentech Corp. and Donware Inc. On January 1, 2019, Condax Corp purchased 8,000 shares of Opentech Corp's common shares at $40. This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations. On October 11, 2019, Opentech declared and paid cash dividends of $30,000. On December 31, 2019, Opentech reported profit of $190,000 for the year. Also, January 2, Condax Purchased 5,000 shares of Donware, Inc. for $40 per share plus $6,195 in fees and commission. These shares represent only 1% ownership of Donware. 20 Donware declared a $1.50 per share cash dividend to shareholders of record on October 1, payable October 15. To Condax 15 Condax received Donware, Inc. cash dividend. 31 Donware reported $35 per share as its market value for the year end.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 10MC
Related questions
Question
Prepare
- On January 1, 2019, Condax Corp purchased 8,000 shares of Opentech Corp's common shares at $40. This purchase represented 35% of Opentech's outstanding shares and gave Condax significant influence over Opentech's management and operations.
- On October 11, 2019, Opentech declared and paid cash dividends of $30,000.
- On December 31, 2019, Opentech reported profit of $190,000 for the year.
- Also, January 2, Condax Purchased 5,000 shares of Donware, Inc. for $40 per share plus $6,195 in fees and commission. These shares represent only 1% ownership of Donware.
- 20 Donware declared a $1.50 per share cash dividend to shareholders of record on October 1, payable October 15. To Condax
- 15 Condax received Donware, Inc. cash dividend.
- 31 Donware reported $35 per share as its market value for the year end.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning