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Prepare journal entries for the transactions and events described.

Prepare journal entries for the transactions and events described.

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 March 20, 2016, Reeder Company acquired 82,000 shares of Needed Industries common stock at $64 per share as a long-term investment. Needed has 200,000 shares of outstanding voting common stock. The following additional information is presented for the calendar year ended December 31, 2016: 2016 Reeder received a cash Nov. 15 dividend of $3 per share from Needed Industries. Needed announced Dec. 31 earnings for the year of $300,000. 2017 31 Jan. 6 Needed Industries common stock had a closing market price of $56 per share. Reeder sold a quarter of its shares of Needed Industries at a price of $70 per share. Prepare journal entries for the transactions and events described.
Transcribed Image Text:On March 20, 2016, Reeder Company acquired 82,000 shares of Needed Industries common stock at $64 per share as a long-term investment. Needed has 200,000 shares of outstanding voting common stock. The following additional information is presented for the calendar year ended December 31, 2016: 2016 Reeder received a cash Nov. 15 dividend of $3 per share from Needed Industries. Needed announced Dec. 31 earnings for the year of $300,000. 2017 31 Jan. 6 Needed Industries common stock had a closing market price of $56 per share. Reeder sold a quarter of its shares of Needed Industries at a price of $70 per share. Prepare journal entries for the transactions and events described.
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