On January 1st 2020, the Tesla Company purchased 400 of the 1000 shares of the Spaceship Enterprise Company (SEC)for $4,000,000. At this time Spaceship Enterprise's assets has a book value equal to market value for all assets exceptthe NCC1701 which has a 5 year life, a book value of $200,000 and a market value of $350000. On July 1st 2020, SEC declared and paid a $2 per share dividendOn December 31st 2020 SEC's stock was selling for $11,000 per share. SEC reported income of $222,000On July 1st 2021 SEC declared and paid a $2 per share dividendOn December 31st 2021, SEC's stock was selling for $9999 per share. SEC reported a loss of $111,000On July 1st 2022 SEC had a 2 for one stock splitOn December 31st 2022, SEC's stock was selling for $5555 per share. SEC reported a profit of $333,000On February 4th 2023 Tesla sold all of its stock in Spaceship Enterprise Company for $5700 per share. REQUIRED; AMAKE ALL OF THE JOURNAL ENTRIES FOR TESLA BEGINNING WITH THE PURCHASE OF THE SPACESHIP ENTERPRISE COMPANY BFILL OUT THE FOLLOWING TABLEON TESLA'S BOOKS2020202120222023BOOK VALUE OF INVESTMENT IN SECINCOME AFFECT OF INVESTMENT IN SEC
On January 1st 2020, the Tesla Company purchased 400 of the 1000 shares of the Spaceship Enterprise Company (SEC)for $4,000,000. At this time Spaceship Enterprise's assets has a book value equal to market value for all assets exceptthe NCC1701 which has a 5 year life, a book value of $200,000 and a market value of $350000. On July 1st 2020, SEC declared and paid a $2 per share dividendOn December 31st 2020 SEC's stock was selling for $11,000 per share. SEC reported income of $222,000On July 1st 2021 SEC declared and paid a $2 per share dividendOn December 31st 2021, SEC's stock was selling for $9999 per share. SEC reported a loss of $111,000On July 1st 2022 SEC had a 2 for one stock splitOn December 31st 2022, SEC's stock was selling for $5555 per share. SEC reported a profit of $333,000On February 4th 2023 Tesla sold all of its stock in Spaceship Enterprise Company for $5700 per share. REQUIRED; AMAKE ALL OF THE JOURNAL ENTRIES FOR TESLA BEGINNING WITH THE PURCHASE OF THE SPACESHIP ENTERPRISE COMPANY BFILL OUT THE FOLLOWING TABLEON TESLA'S BOOKS2020202120222023BOOK VALUE OF INVESTMENT IN SECINCOME AFFECT OF INVESTMENT IN SEC
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On January 1st 2020, the Tesla Company purchased 400 of the 1000 shares of the Spaceship Enterprise Company (SEC)for $4,000,000. At this time Spaceship Enterprise's assets has a book value equal to market value for all assets exceptthe NCC1701 which has a 5 year life, a book value of $200,000 and a market value of $350000. On July 1st 2020, SEC declared and paid a $2 per share dividendOn December 31st 2020 SEC's stock was selling for $11,000 per share. SEC reported income of $222,000On July 1st 2021 SEC declared and paid a $2 per share dividendOn December 31st 2021, SEC's stock was selling for $9999 per share. SEC reported a loss of $111,000On July 1st 2022 SEC had a 2 for one stock splitOn December 31st 2022, SEC's stock was selling for $5555 per share. SEC reported a profit of $333,000On February 4th 2023 Tesla sold all of its stock in Spaceship Enterprise Company for $5700 per share. REQUIRED; AMAKE ALL OF THE JOURNAL ENTRIES FOR TESLA BEGINNING WITH THE PURCHASE OF THE SPACESHIP ENTERPRISE COMPANY
BFILL OUT THE FOLLOWING TABLEON TESLA'S BOOKS2020202120222023BOOK VALUE OF INVESTMENT IN SECINCOME AFFECT OF INVESTMENT IN SEC
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