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In: Accounting

2017 Jan. 2     Purchased 30,000 shares of O’Neal Company $3 par value common stock for $205,000...

2017

Jan. 2     Purchased 30,000 shares of O’Neal Company $3 par value common stock for $205,000 plus a broker’s fee of $3,580.   O’Neal has 90,000 common shares outstanding and it policies will be significantly influenced by Frederick Company.

Sept 1.   O’Neal declared and paid a cash dividend of $3.20 per share.

Dec. 31 O’Neal announced that net income for the year is $650,900.

2018

June 1    O’Neal declared and paid a cash dividend of $3.53 per share.

Dec. 31 O’Neal announced that net income for the year is $689,750.

Dec. 31 Frederick sold 12,000 share of O’Neal for $162,500.

REQUIREMENTS:

Prepare journal entries on the books of Frederick based on the information given.

Prepare journal entries on the books of O’Neal based on the information given.

Assume all of the facts about Frederick’s investment EXCEPT that there is NO significant influence.   Prepare the entries for Frederick.

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Expert Solution

ekkarill92 answered 2 years ago
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