table 16 6 the following are transactions in the purchase and sale of epstein ltd sh 4305860

table 16 6 the following are transactions in the purchase and sale of epstein ltd sh 4305860

 

Table 16-6

The following are transactions in the purchase and sale of Epstein Ltd. shares by Monty Inc.

January 15, 2009Purchase 1, 000 shares of Epstein at $25.00

February 10, 2009Received $1.00 dividend from Epstein

December 31, 2009Epstein reported net income of $10,000.

December 31, 2009Market value of Epstein shares $24.50.

June 30, 2010Sold all shares of Epstein for $26.50 per share.

Record the journal entries for the above transactions for Monty Inc.

155) Refer to Table 16-6. Assume that the investment in Epstein shares is classified as short-term investment by Monty and Monty has no significant influence over Epstein.

156) Refer to Table 16-6. Assume that the investment in Epstein shares is classified as a long-term investment.. Monty exercises significant influence over Epstein by owning 25% of the outstanding shares.  Assume that Epstein earned no income from January 1, 2010 to June 30, 2010, nor did it pay any dividends during that period.

 

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