Selected transactions for Adler Co follow On January 1, 2009, Adler Co invested $300,000 of Walker, Inc common stock On November 15, 2009, Adler Co received a $5,000 dividend from Walker, Inc Walker, Inc earned $100,000 of net income for 2009 On January 1, 2009, Adler Co invested in the bonds of Mc...

a 1 Investment in Walker 300000 Cash 300000 Cash 5000 Dividend Revenue 5000 2 Investment in Walker 3 ...

Selected transactions for Adler Co. follow. On January 1, 2009, Adler Co. invested $300,000 of Walker,

Question:

Selected transactions for Adler Co. follow.
• On January 1, 2009, Adler Co. invested $300,000 of Walker, Inc. On November 15, 2009, Adler Co. received a $5,000 from Walker, Inc.
• Walker, Inc. earned $100,000 of net income for 2009.
• On January 1, 2009, Adler Co. invested in the bonds of McFarland Enterprises by purchasing ﬁve newly-issued, $1,000, 10 percent, 10-year bonds for $4,900.
• On June 30, 2009, Mc Far land Enterprises paid semiannual interest to bondholders.
Required:
(a) Record the journal entries for these transactions related to Walker, Inc., assuming that:
(1) Adler Co. owns 10 percent of Walker, Inc.
(2) Adler Co. owns 40 percent of Walker, Inc.
(3) Adler Co. owns 80 percent of Walker, Inc.
(b) Describe Adler Co.’s year-end procedures related to Walker, Inc. under each assumption from part (a).
(c) Record the entries for Adler Co.’s investment in McFarland Enterprises.
Common Stock
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...