During 2012, Genco Corporation purchased 10,000 shares of Wiener Company stock for $85 per share. Wiener had

Question:

During 2012, Genco Corporation purchased 10,000 shares of Wiener Company stock for $85 per share. Wiener had a total of 40,000 shares of stock outstanding.

1. Prepare journal entries for the following transactions:

Jan. 1 Purchased 10,000 shares of common stock at $85.

Dec. 31 Wiener declared and paid a $4.60-per-share dividend.

31 Wiener reported net income for 2012 of $360,000.

2. On December 31, 2012, the market price of Wiener’s stock was $79 per share. Show how this investment would be reported on Genco’s balance sheet at December 31, 2012, assuming that this is the only stock investment owned by Genco.

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