Problemon january 2 a company purchased 15000 shares of, Ask an Expert

Accounting

Problem:

On January 2, a company purchased 15,000 shares of Wal-Mart common stock at $89.50 per share plus a $3,000 commission. This represents 30% of Wal-Mart's outstanding stock. On August 6, Wal-Mart declared and paid cash dividends of $2.50 per share and on December 31 it reported net income of $1,150,000.

Required

Question: Prepare the necessary entries the company must make to account for these transactions and events.

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164264

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