ACC 9112 Financial Accounting - Intensive Assignment

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ACC 9112 Financial Accounting - Intensive Assignment - City University of New York, USA

Question - Gioia Company acquired some of the 79,000 shares of outstanding common stock (no par) of Tristezza Corporation during the current year as a long-term investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the current year:

Jan. 10 purchased 17,875 shares of Tristezza common stock at $19 per share.

Dec. 31 a. Received the current year financial statements of Tristezza Corporation that reported net income of $96,000.

b. Tristezza Corporation declared a cash dividend of $0.6 per share.

c. Tristezza Corporation paid the cash dividend declared in (b).

d. Determined the market price of Tristezza stock to be $18 per share.

Required - Prepare the journal entries for each transactions.

Reference no: EM132436190

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