On January 1,2013 Blue Cat Corporation purchased 1,000 shares (5%)of Mike Mouse Co.for $10,000 as a long term investment.On March 31,2014 Mike Mouse pays Blue Cat a $5,000 dividend.At year end December 31,2014 Mike Mouse shares are trading at $12 per share.Blue Cat then sells their investment in Mike Mouse Co for $11,500 on February 4,2015.Prepare Blue Cat's journal entries for 2013,2014 and 2015.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q20: The adjusting entry for investments at fair
Q21: The investor should generally use the equity
Q22: Under the equity method of accounting for
Q23: January 1,2016 Orange Tree Spa invests in
Q24: Retail Energy Corporation paid $1,300,000 on January
Q26: Companies with investments accounted for by the
Q27: Vance Corporation purchases UXB shares on May
Q28: Prepare journal entries for the following transactions.Note
Q29: The equity method of accounting for a
Q30: Why is understanding the extent to which
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents