On January 2, 2020 Amber Acquisitions purchased 40,000 of the common shares of Weinstein's Nordic Italian...
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On January 2, 2020 Amber Acquisitions purchased 40,000 of the common shares of Weinstein's Nordic Italian Cuisine (WNIC) for $2,400,000. The 40,000 shares represent a 40% interest in WNIC voting stock. During 2020, WNIC reported the following dividends and Net Income: Dividend paid April 15 $ 2$ 240,000 Dividend paid October 15 300,000 Net Income fye Dec. 31. 2020 680,000 As of December 31, 2020 shares of WNIC were trading for $62/share and shares of Amber Acquisitions were trading for $78/share. On January 13, 2021 Amber became aware that WNIC was using Kangaroo meat for "Hamburgers" and sold all of her WNIC stock for $2,540,000 before the atrocity became public knowledge. Instructions: On the books of Amber Acquisitions: Record the entry to record the purchase of the WNIC stock on January 2, 2020 Record the journal entries (if any) regarding WNIC's Net Income and Dividends a Record the adjusting entry (if any) required at December 31, 2020 d. Record the entry to record the sale of the WNIC stock on January 13, 2021 On the books of Amber Acquisitions: Assuming the WNIC stock, purchased by Amber, represents 10% of the outstanding WNIC shares, record the following transactions Record the entry to record the purchase of the WNIC stock on January 2, 2020 Record the journal entries (if any) regarding WNIC's Net Income and Dividends e Record the adjusting entry (if any) required at December 31, 2020 h Record the entry to record the sale of the WNIC stock on January 13, 2021 On January 2, 2020 Amber Acquisitions purchased 40,000 of the common shares of Weinstein's Nordic Italian Cuisine (WNIC) for $2,400,000. The 40,000 shares represent a 40% interest in WNIC voting stock. During 2020, WNIC reported the following dividends and Net Income: Dividend paid April 15 $ 2$ 240,000 Dividend paid October 15 300,000 Net Income fye Dec. 31. 2020 680,000 As of December 31, 2020 shares of WNIC were trading for $62/share and shares of Amber Acquisitions were trading for $78/share. On January 13, 2021 Amber became aware that WNIC was using Kangaroo meat for "Hamburgers" and sold all of her WNIC stock for $2,540,000 before the atrocity became public knowledge. Instructions: On the books of Amber Acquisitions: Record the entry to record the purchase of the WNIC stock on January 2, 2020 Record the journal entries (if any) regarding WNIC's Net Income and Dividends a Record the adjusting entry (if any) required at December 31, 2020 d. Record the entry to record the sale of the WNIC stock on January 13, 2021 On the books of Amber Acquisitions: Assuming the WNIC stock, purchased by Amber, represents 10% of the outstanding WNIC shares, record the following transactions Record the entry to record the purchase of the WNIC stock on January 2, 2020 Record the journal entries (if any) regarding WNIC's Net Income and Dividends e Record the adjusting entry (if any) required at December 31, 2020 h Record the entry to record the sale of the WNIC stock on January 13, 2021
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Answera No Date General Journal Debit Credit a Jan 2 Investment in WNIC Stock 2400000 Cash 2400000 T... View the full answer
Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
Posted Date:
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