Information pertaining to long term investments in stock in 2005 by Tate Corporation follows Acquired 15 of the 250,000 shares of common stock of Barkly Company at a total cost of $8 per share on January 1, 2005 On July 1, Barkly Company declared and paid a cash dividend of $2 per share On December...

Computation of the Journal Entries Jan 1 Stock Investments 300000 Cash 300000 25 ...

Information pertaining to long-term investments in stock in 2005 by Tate Corporation follows: Acquired 15% of the

Question:

Information pertaining to long-term investments in stock in 2005 by Tate follows:
Acquired 15% of the 250,000 shares of of Barkly Company at a total cost of $8 per share on January 1, 2005. On July 1, Barkly Company declared and paid a cash of $2 per share. On December 31, Barkly 's reported net income was $654,000 for the year.
Obtained significant influence over Wynn Company by buying 30% of Wynn's 100,000 outstanding shares of at a total cost of $22 per share on January 1, 2005. On June 15, Wynn Company declared and paid a cash of $1.75 per share. On December 31, Wynn's reported net income was $280,000.
Instructions
Prepare all necessary journal entries for 2005 for Tate 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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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...