[The following information applies to the questions displayed below.] The following information pertains to Rossow Corporation and its investee Reimer Company: a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000; b. Reimer reported $50,000 net income on December 31, 2021; c. Reimer's stock price was $33 on December 31, 2021; d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022; e. Reimer reported $50,000 net income on December 31, 2022; and f. Reimer's stock price was $28 on December 31, 2022.
[The following information applies to the questions displayed below.] The following information pertains to Rossow Corporation and its investee Reimer Company: a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000; b. Reimer reported $50,000 net income on December 31, 2021; c. Reimer's stock price was $33 on December 31, 2021; d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022; e. Reimer reported $50,000 net income on December 31, 2022; and f. Reimer's stock price was $28 on December 31, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do B,C,E,F
![Required information
[The following information applies to the questions displayed below.]
The following information pertains to Rossow Corporation and its investee Reimer Company:
a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000;
b. Reimer reported $50,000 net income on December 31, 2021;
c. Reimer's stock price was $33 on December 31, 2021;
d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022;
e. Reimer reported $50,000 net income on December 31, 2022; and
f. Reimer's stock price was $28 on December 31, 2022.
Required:
1. Prepare journal entries to record the facts in the case, assuming Rossow owns less than 10 percent of Reimer's stock. (If no entry is
required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer is not complete.
No
Date
General Journal
Debit
Credit
A
July 12, 2021
Investment in Marketable Equity Securities
30,000 O
Cash
30,000 O
B
December 31, 202 No Transaction Recorded
December 31, 202 No Transaction Recorded
May 01, 2022
Cash
2,000 O
Dividend Revenue
2,000 O
E
December 31, 202 No Transaction Recorded
F
December 31, 2021 No Transaction Recorded](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1bcb22fa-f91f-4e0d-8193-1cb3b9ae0f86%2Fdd63f188-6c30-46e8-8cbc-1538fbfac0a1%2F6oclr6_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The following information pertains to Rossow Corporation and its investee Reimer Company:
a. Rossow purchased 1,000 shares of Reimer on July 12, 2021, for $30,000;
b. Reimer reported $50,000 net income on December 31, 2021;
c. Reimer's stock price was $33 on December 31, 2021;
d. Reimer declared and paid a $2 per share cash dividend on May 1, 2022;
e. Reimer reported $50,000 net income on December 31, 2022; and
f. Reimer's stock price was $28 on December 31, 2022.
Required:
1. Prepare journal entries to record the facts in the case, assuming Rossow owns less than 10 percent of Reimer's stock. (If no entry is
required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Answer is not complete.
No
Date
General Journal
Debit
Credit
A
July 12, 2021
Investment in Marketable Equity Securities
30,000 O
Cash
30,000 O
B
December 31, 202 No Transaction Recorded
December 31, 202 No Transaction Recorded
May 01, 2022
Cash
2,000 O
Dividend Revenue
2,000 O
E
December 31, 202 No Transaction Recorded
F
December 31, 2021 No Transaction Recorded
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