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Instructions: Prepare the journal entries to record the above transactions. Johnson Inc. had the following transactions for January:
Instructions: Prepare the journal entries to record the above transactions.
Johnson Inc. had the following transactions for January:
1. Purchased marketable securities in Smith Company for $100,000 cash.
2. Purchased 1,000 shares of Parker Co. for $55,000 as a long term
investment. Parker has 10,000 outstanding shares issued and outstanding).
3. Purchased 10,000 shares of Drew Co. for $176,000 as a long term
investment. Drew had 40,000 shares issued and outstanding.
Johnson Inc. received the following dividends:
4. $1.50 per share from Parker Co.
5. $3.00 per share from Drew Co.
Additional transactions include:
6. Parker Co. reported a net income of $127,000, and Drew Co. reported a
net income of $600,000.
7. After dividends were received, we sold the 1,000 shares of Parker Co. for
$60,000 cash.
