Required information [The following information applies to the questions displayed below.] Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2021, Marg Company purchased a block of these shares in the open market at $20 per share. At the end of 2021, Lisa reported net income of $300,000 and cash dividends of $0.60 per share. At December 31, 2021, Lisa Company stock was selling at $18 per share. 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 10,000 shares purchased. 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 40,000 shares purchased. 3. Complete the following schedule to show the separate amounts that should be reported on the 2021 financial statements of Marg Company:
Required information [The following information applies to the questions displayed below.] Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2021, Marg Company purchased a block of these shares in the open market at $20 per share. At the end of 2021, Lisa reported net income of $300,000 and cash dividends of $0.60 per share. At December 31, 2021, Lisa Company stock was selling at $18 per share. 2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 10,000 shares purchased. 2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 40,000 shares purchased. 3. Complete the following schedule to show the separate amounts that should be reported on the 2021 financial statements of Marg Company:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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N1.
Account
![Required information
[The following information applies to the questions displayed below.]
Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2021, Marg Company purchased a block
of these shares in the open market at $20 per share. At the end of 2021, Lisa reported net income of $300,000 and cash
dividends of $0.60 per share. At December 31, 2021, Lisa Company stock was selling at $18 per share.
2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 10,000 shares purchased.
2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 40,000 shares purchased.
3. Complete the following schedule to show the separate amounts that should be reported on the 2021 financial statements of Marg
Company:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd96efc3-2f98-4cac-898c-7da2d5d05bd8%2F0d2b4199-f814-4bed-b299-e95e1cbe269c%2Fdlmm5nj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Lisa Company had outstanding 100,000 shares of common stock. On January 10, 2021, Marg Company purchased a block
of these shares in the open market at $20 per share. At the end of 2021, Lisa reported net income of $300,000 and cash
dividends of $0.60 per share. At December 31, 2021, Lisa Company stock was selling at $18 per share.
2-a. Prepare the journal entries for Marg Company at the dates indicated for Case A: 10,000 shares purchased.
2-b. Prepare the journal entries for Marg Company at the dates indicated for Case B: 40,000 shares purchased.
3. Complete the following schedule to show the separate amounts that should be reported on the 2021 financial statements of Marg
Company:
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