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On January 2,Froxel Company Purchased 10,000 Shares of Sandia Corp

Question 195

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On January 2,Froxel Company purchased 10,000 shares of Sandia Corp.common stock at $19 per share.This represents 30% of Sandia Corp.'s outstanding stock.On August 6,Sandia Corp.declared and paid cash dividends of $1.75 per share,and on December 31 it reported net income of $150,000.Prepare the necessary entries for Froxel to account for these transactions and events.

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