On August 4, 2016, Osaka Corporation purchased 1,000 common shares of Tremblay Ltee for $45,000. The following

Question:

On August 4, 2016, Osaka Corporation purchased 1,000 common shares of Tremblay Ltee for $45,000. The following information applies to Tremblay's shares:

Tremblay declares?and pays?cash dividends of?$2?per?share?on June?1?of each?year.

Required

1. Prepare journal entries to record the facts in the case, assuming that Osaka purchased the shares for the portfolio of securities held for trading.2. Prepare journal entries to record the facts in the case, assuming that Osaka purchased the shares for the portfolio of SAS.3. Prepare journal entries to record the facts in the case, assuming that Osaka used the equity method to account for the investment. Osaka owns 30 percent of Tremblay, and Tremblay reported $50,000 in net earnings each year.

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... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...