Batman Corporation currently holds 28% of the shares of Joker Corporation as a long-term investment. The carrying value at the start of the year was $17,200,000. The following investment transactions took place in 2020. Mar 5 Purchased additional shares of Joker at a cost of $1,500,000. Brokerage commissions on the purchase were $33,000. Batman now holds 38% of the shares of Joker Corporation. Aug 17 Joker declared and distributed a total of $447,368 in dividends. Dec 31 Received the annual report from Joker, and their total net income for the year was $7,120,000. Required a) Record the transactions in the general journal. b) Post the entries into a T-account for Long-term Investment – Joker, clearly showing the opening balance and the ending balance as at Dec 31, 2020.
Batman Corporation currently holds 28% of the shares of Joker Corporation as a long-term investment. The carrying value at the start of the year was $17,200,000. The following investment transactions took place in 2020. Mar 5 Purchased additional shares of Joker at a cost of $1,500,000. Brokerage commissions on the purchase were $33,000. Batman now holds 38% of the shares of Joker Corporation. Aug 17 Joker declared and distributed a total of $447,368 in dividends. Dec 31 Received the annual report from Joker, and their total net income for the year was $7,120,000. Required a) Record the transactions in the general journal. b) Post the entries into a T-account for Long-term Investment – Joker, clearly showing the opening balance and the ending balance as at Dec 31, 2020.
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 64P
Related questions
Question
Batman Corporation currently holds 28% of the shares of Joker Corporation as a long-term investment. The carrying value at the start of the year was $17,200,000. The following investment transactions took place in 2020.
Mar 5 Purchased additional shares of Joker at a cost of $1,500,000. Brokerage commissions on the purchase were $33,000. Batman now holds 38% of the shares of Joker Corporation.
Aug 17 Joker declared and distributed a total of $447,368 in dividends.
Dec 31 Received the annual report from Joker, and their total net income for the year was $7,120,000.
Required
- a) Record the transactions in the general journal.
- b)
Post the entries into a T-account for Long-term Investment – Joker, clearly showing the opening balance and the ending balance as at Dec 31, 2020.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT