Reference no: EM133133625

Questions -

Q1. JacobCo Inc. designs and manufactures specialty large-scale integrated circuits (LSIC) for the automotive industry. Most of the designs and therefore their products are based on the special properties of geranium oxide silicon. A reliable supply of germanium oxide silicon is vital to the production process of the company and there are very few suppliers available.

JacobCo's CEO and COO met with the Board of Directors concerning securing a reliable source for the raw material germanium oxide silicon billets. The company has an opportunity to take a very large interest in JacobCo Inc. which is one of their smaller suppliers of geranium oxide silicon billets. The board of directors agrees and on March 15, 2021 JacobCo's purchased 360,000 shares of the 800,000 outstanding shares of the common stock of SophCo. Inc. at $15 per share. Make the entry to record the above transactions.

Q2. On June 30, 2021, the end of SophCo Inc.'s fiscal year, it reported a profit of $1,850,000. They also declared a dividend on the common stock of $0.12 per share. The date of record was July 15 the ex-dividend date was July 12 and the date of payment was August 1. Make the entry that must be made in the accounting system of JacoCo Inc. on June 30, 2021.

Q3. On 81/21 JocbCo Inc. received their dividend check for $43,200. Make the entry to record the dividend.