Listed below are a few events and transactions of Kash Company. 2011 Jan. 2 Purchased 80,000 shares
Question:
Listed below are a few events and transactions of Kash Company.
2011
Jan. 2 Purchased 80,000 shares of Bushtex Co. common stock for $544,000 cash plus a broker's fee of $3,400 cash. Bushtex has 160,000 shares of common stock outstanding and its policies will be significantly influenced by Kash.
Sept. 1 Bushtex declared and paid a cash dividend of $3.40 per share.
Dec. 31 Bushtex announced that net income for the year is $1,110,400.
2012
June 1 Bushtex declared and paid a cash dividend of $3.65 per share.
Dec. 31 Bushtex announced that net income for the year is $1,244,800.
Dec. 31 Kash sold 16,000 shares of Bushtex for $368,100 cash.
Prepare journal entries to record the above transactions and events of Kash Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
