On January 1, 2014, Frick Company purchased 10,000 shares of the stock of Floozy, and did obtain significant influence.  The...

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On January 1, 2014, Frick Company purchased 10,000 shares of the stock of Floozy, and did obtain significant influence.  The investment is intended as a long-term investment.  The stock was purchased for $90,000, and represents a 30% ownership stake.  Floozy made $25,000 of net income in 2014, and paid dividends of $10,000.  The price of Floozy's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year.  

 

 

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Requirements: 

a. Prepare the January 1 & December 31 general journal entries for Frick Company.

 

b. How much should the Frick Company report on the balance sheet for the investment in Floozy as the end of 2014

    • 9 years ago
    • 999999.99
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