ACCT 221 Quiz 1 PROBLEM 2

ACCT 221 Quiz 1 PROBLEM 2 Click Link Below To Buy: http://hwcampus.com/shop/acct-221-quiz-1-problem-2/ On January 2, 2016, Alpha Company purchased 25,000 shares of Bravo Company stock on the open market for $50 per share as a long-term investment. On both June 15 and December 15, Bravo Company paid $50,000 in dividends for a total annual dividend of $100,000. On December 31, Bravo Company reported net income of $400,000 and the stock had a market value of $75 per share. Both Alpha and Bravo operate on a calendar year. Part A – Assume that at all times during the year there were 250,000 shares of Bravo Company stock outstanding. Record the journal entries for the purchase of the stock, the dividends, and the reporting of income at year end on Alpha Company books. State what the year-end value of the stock investment account is on the Alpha Company books. Part B – Assume that at all times during the year there were 100,000 shares of Bravo Company stock outstanding. Record the journal entries for the purchase of the stock, the dividends, and the reporting of income at year end on Alpha Company books. State what the year-end value of the stock investment account is on the Alpha Company books.