Reference no: EM131866871

Question - At the beginning of year 3, Radar Technologies Inc. (RT) purchaed 50,000 shares of Burns Co. at $10 per shared. In Year 4, RT purchased an additional 20000 shares for $12/share and then 10,000 shares in Year 5 for $15/share. Finally, in Year 6, RT purchased 40,000 more shares at $16/share.

The following table presents the information from Burns Co.:

Year Net Income Dividends Paid Ending Stock Price

3 $200,000 $60,000 $11

4 $300,000 $60,000 $14

5 $500,000 $75,000 $16

6 $4000,000 $75,000 $17

Burns Co. has 500,000 shares of stock issued and outstanding

Make the journal entries to record the purchase of stock in Year 6 and the transfer of the stocks into the equity classification.