Question: Excel format! Please show calculations, it is important! Thank you! PROBLEM # 1 ABC Co. purchased 1,000 shares of XYZ for $23 each this year

Excel format! Please show calculations, it is important! Thank you!

PROBLEM # 1

ABC Co. purchased 1,000 shares of XYZ for $23 each this year and classified the investment as a trading security. ABC sold 400 shares of the stock for $24 each. At year end the price per share of the XYZ Company had increased to $26.

Instructions

Prepare the journal entries for these transactions and any year-end adjustments.

PROBLEM # 2

On January 1, 2017, LabTech Inc. purchased 40% of the common shares of UnderTech Company for $280,000. During the year, UnderTech earned net income of $140,000 and paid dividends of $34,000.

Instructions

Prepare the entries for LabTech to record the purchase and any additional entries related to this investment in UnderTech Company in 2017.

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