Sunshine Inc. has the following transactions pertaining to the common stock. Jan. 1 Bought 40% of Sealand’ 60,000 outstanding shares of common stock at a cost of $12 per share, obtaining significant influence over Sealand Corp April 15 Sealand declared and paid a cash dividend of $45,000. May18 Acquired 5% of the 400,000 shares of common stock of Bluewater Corp. at a total cost of $6 per share June 1 Purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400. July 1 Sold 100 shares of Young stock for $3,300, less a $50 brokerage fee. Aug.30 Bluewater declared and paid a $75,000 dividend. Oct.1 Received a dividend of $1.25 per share of Young Company. Dec.31 Bluewater Corp. reported net income of $244,000 for the year Dec.31 Sealand reported net income of $120,000 for the year At December 31, the market price of Bluewater Corp was $13 per share and the Young Company was $ 25. The stock is classified as trading securities Required: Prepare the journal entries for Sunshine Inc. for 2020
- Sunshine Inc. has the following transactions pertaining to the common stock.
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Jan. 1 |
Bought 40% of Sealand’ 60,000 outstanding shares of common stock at a cost of $12 per share, obtaining significant influence over Sealand Corp |
|
April 15 |
Sealand declared and paid a cash dividend of $45,000. |
|
May18 |
Acquired 5% of the 400,000 shares of common stock of Bluewater Corp. at a total cost of $6 per share |
|
June 1 |
Purchased 500 shares (2% ownership) of Young Company common stock for $30 per share plus brokerage fees of $400. |
|
July 1 |
Sold 100 shares of Young stock for $3,300, less a $50 brokerage fee. |
|
Aug.30 |
Bluewater declared and paid a $75,000 dividend. |
|
Oct.1 |
Received a dividend of $1.25 per share of Young Company. |
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Dec.31 |
Bluewater Corp. reported net income of $244,000 for the year |
|
Dec.31 |
Sealand reported net income of $120,000 for the year |
At December 31, the market price of Bluewater Corp was $13 per share and the Young Company was $ 25. The stock is classified as trading securities
Required: Prepare the
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