Reference no: EM132406671

Question

1. On January 2, 2018, Alpaca Company purchased 15,000 shares of the stock of Zebra Company, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $12 per share, and represents a 10% ownership stake. Zebra Company made $55,000 of net income in 2018, and paid dividends of 50 cents per share on December 15, 2018. On December 31, 2018, Zebra Company's stock was trading on the open market for $15 per share at the end of the year. Prepare General Journal entries for January 2 purchases and the December 15 & 31, 2018 record of income & gain/loss.

2. On April 1, 2019, Alaska Trading Company issued $900,000 of 6%, 10-year bonds. The bonds, which were issued at 98, pay interest on October 1 and April 1. general journal entry needed.