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Question: Prepare dated journal entries on the acquiring company's books for the investment from acquisition to disposal on the scenarios below....

Question:Prepare dated journal entries on the acquiring company's books for the investment from acquisition to disposal on the scenarios below. Please Ignore income taxes.

a)   On March 1, 20X7, Rondeau Ltd., a private enterprise, acquired 1,000 shares of Hoi Co. for $30,000. This investment represents a 15% interest in Hoi. Rondeau uses the cost method to record the investment. On November 30, 20X7, Hoi paid a $25,000 dividend to its shareholders. At February 28, 20X8, Hoi's shares were valued at $40/share and Hoi reported net income of $150,000 for the year. On April 15, 20X8, Rondeau sold the shares for $53,000. Both Rondeau and Hoi have February 28th year-ends.

b)   On March 1, 20X7, Casey Co. acquired 1,000 shares of Hoi Co. for $30,000. This investment represents a 15% interest in Hoi. Casey has classified this investment as an FYTPL. On November 30, 20X7, Hoi paid a $25,000 dividend to its shareholders. At February 28, 20X8, Hoi's shares were valued at $40/share and Hoi reported net income of $150,000 for the year. On April 15, 20X8, Casey sold the shares for $53,000. Both Casey and Hoi have February 28th year-ends.

c)   On March 1, 20X7, JBJ Co. acquired 1,000 shares of Hoi Co. for $30,000. This investment represents a 15% interest in Hoi. JBJ has classified this investment as an FYTOCI. On November 30, 20X7, Hoi paid a $25,000 dividend to its shareholders. At February 28, 20X8, Hoi's shares were valued at $40/share and Hoi reported net income of $150,000 for the year. On April 15, 20X8, JBJ sold the shares for $53,000. Both JBJ and Hoi have February 28thyear-ends.

d)   On March 1, 20X7, Merk Ltd. acquired 2,000 shares of Hoi Co. for $60,000. This investment represents a 30% interest in Hoi. Merk has significant influence. On November 30, 20X7, Hoi paid a $25,000 dividend to its shareholders. At December 31, 20X7, Hoi's shares were valued at $40/share and Hoi reported net income of $150,000 for the year. On April 15, 20X8, Merk sold the shares for $106,000. Both Merk and Hoi have February 28th year-ends.

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