Prepare the journal entries for the following transactions for Morgan Co. July 1 Morgan Co. purchased 32,000 shares of the total of 100,000 outstanding shares of Gordon Corp. stock for $10 per share plus a $400 commission. Dec. 31 Gordon Corp.'s total earnings for the period are $80,000. 31 Gordon Corp. paid a total of $45,000 in cash dividends.
Prepare the journal entries for the following transactions for Morgan Co. July 1 Morgan Co. purchased 32,000 shares of the total of 100,000 outstanding shares of Gordon Corp. stock for $10 per share plus a $400 commission. Dec. 31 Gordon Corp.'s total earnings for the period are $80,000. 31 Gordon Corp. paid a total of $45,000 in cash dividends.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare the
July 1
Morgan Co. purchased 32,000 shares of the total of 100,000 outstanding shares of Gordon Corp. stock for $10 per share plus a $400 commission.
Dec. 31
Gordon Corp.'s total earnings for the period are $80,000.
31
Gordon Corp. paid a total of $45,000 in cash dividends.
Expert Solution
Step 1
Given that
morgan co. purchased 32000 shares of Gordon corp.stock
Total earnings = $80000
cash dividends paid = $45000
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