Explore BrainMass

Acquiring Shares and Paying Dividend: Company ABC Journal Entries

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

On 1/1/2012 Company ABC acquires 20,000 shares of company XYZ at cash price of $10 per share. Company XYZ has 300,000 shares issued and outstanding. On 6/15/12, Company XYZ declares dividends of $2 per share. These dividends are paid on 7/1/12. For the period of 1/1/12 to 12/31/12 Company XYZ has a net loss of $600,000 and the market price of its shares is $12 per share.

Make journal entries for Company ABC.

© BrainMass Inc. brainmass.com December 20, 2018, 10:34 am ad1c9bdddf

Solution Preview

Since this is not the equity method or a consolidated statement, the earnings ...

Solution Summary

Your tutorial with instructional notes about the levels of ownership dictating treatment are attached in Excel.