Present Entries to Record the Following Selected Transactions of Masterson

question 41

Essay

Present entries to record the following selected transactions of Masterson Co.(a)Purchased 600 shares of the 100,000 shares outstanding $10 par common shares of Dankin Corporation for $5,100.(b)Purchased 3,500 shares of the 10,000 shares no par common shares of Ramon Co. for $45,700. The investment was accounted for by the equity method.(c)Received a cash dividend of $1 per share on the Dankin Corporation stock acquired in (a).(d)Received a cash dividend of $2 per share on the Ramon Co. stock acquired in (b).(e)Sold 100 shares of the Dankin Corporation shares acquired in (a) for $2,100.(f)Dankin Corporation reported net income of $30,000 and Ramon Company's reported net income was $50,000.

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Definitions:

Vacuum Booster

A device that uses engine vacuum to increase the force applied to the brake pedal, thereby enhancing braking power and efficacy.

Electronic Stability Control

A safety technology that automatically detects and reduces loss of traction (skidding), helping to prevent the vehicle from veering off course.

Antilock Brake Systems

A safety system in vehicles that prevents the wheels from locking up during braking, allowing the driver to maintain steering control.

Permanent-Magnet Wheel Speed Sensor

A sensor that uses a permanent magnet to detect wheel speed, often used in anti-lock braking systems.