On Jan 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence. The investment is intended as a long-term investment.
On Jan 2, 2017, Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant
influence. The investment is intended as a long-term investment. The stock was purchased for $10 per share, and represents a 12% ownership stake. Zulu Company made $25,000 of net income in 2107, and paid dividends of $11,000 on Dec 15,2017. On Dec 31, 2017, Zulu Company’s stock was trading on the open market for $9 per share at the end of the year. Use this information to prepare the General Journal entr(res) (without explanation) for Jan 2 purchase and the Dec 15 & 31, 2017 record of income & gain/loss. If no entry is required then write ” No Entry Required.”
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