Edelman Inc. acquired 10% of the 520,000 shares of common stock of Schuberger Co

Question

Edelman Inc. acquired 10% of the 520,000 shares of common stock of Schuberger Corporation at a total cost of $12 per share on June 17, 2017. On September 3, Schuberger declared and paid a $145,000 dividend. On December 31, Schuberger reported net income of $505,000 for the year. 2. Wen Corporation obtained significant influence over Hunsaker Company by buying 30% of Hunsaker's 154,000 outstanding shares of common stock at a cost of $15 per share on January 1, 2017. On May 15, Hunsaker declared and paid a cash dividend of $196,000. On December 31, Hunsaker reported net income of $257,000 for the year. Prepare all necessary journal entries for 2017 for (a) Edelman and (b) Wen.

Explanation / Answer

Date Particulars Debit Credit a) 17-Jun-17 Investement in Shares of schuberger Corporation          624,000 To Bank          624,000 (520000 shares X 10% X 12 per Share) 03-Sep-17 Bank A/c            14,500 To Divindend Income            14,500 (10% of 145000) b) 01-Jan-17 Investement in Shares of Hunsaker Company          693,000 To Bank          693,000 (154000 shares X 30% X 15 per Share) 15-May-17 Bank A/c            58,800 To Divindend Income            58,800 (30% of 196000) 31-12-2017 Income Accrued on profit of Hunsaker Company            77,100 To Income from profit from Hunsaker Company            77,100 (30% of 257000)

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.