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Information Pertaining to Stock Investments in 2017 by Com-Ex Corporation

question 195

Essay

Information pertaining to stock investments in 2017 by Com-ex Corporation follows:
Acquired 15% of the 200,000 shares of common stock of Buffalo Company at a total cost of $9 per share on January 1, 2017. On July 1, Buffalo Company declared and paid a cash dividend of $1.90 per share. On December 31, Buffalo reported net income was $675,000 for the year.
Obtained significant influence over Eta Company by buying 30% of Eta's 120,000 outstanding shares of common stock at a total cost of $25 per share on January 1, 2017. On June 15, Eta Company declared and paid a cash dividend of $2.50 per share. On December 31, Eta's reported net income was $330,000.
Instructions
Prepare all necessary journal entries for 2017 for Com-ex Corporation.


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