Reference no: EM132461104

Question 1: Can you please explain how to prepare How do I use this information to to prepare journal entries, as necessary, to account for the initial investment, dividend, and year-end stock price for the investment in Lynch Corporation?

Question 2: Can you please explain how to prepare How do I use this information to prepare journal entries, as necessary, to account for the initial investment, interest and year-end debt value for the investment in Graham Corporation securities?

Question 3: Can you please explain how to prepare How do I use this information to prepare journal entries, as necessary, to account for the initial investment, dividend and year-end stock price for the investment in Buffet Corporation?

Lynch Corporation's closing stock price at the end of the year was $13 per share. Due to deteriorating finances, the value of Graham's debt held by Bitnec plunged to $150,000. Buffet Corporation's closing stock price at the end of the year was $33 per share.

Cash           $ 500,000         $ 370,000           Accounts receivable           350,000         290,000

Inventories   90,000              110,000            Total current assets           $ 940,000        $ 770,000

Property, plant, & equipment Land $ 200,000 $ 200,000

Building                                  650,000        650,000

Equipment                               950,000      900,000