Two questions related to Investments and International Operations. (Please include computations, Thank You!)
1) On January 1, 2015, Parsons Company purchased 84,000, 10 year, 7% government bonds at 100. The semi-annual interest payment dates are June 30 and December 31.
Journalize the February 1, 2016 sale of the bonds for $82,000 plus accrued interest for one month.
2)On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000. For the year ending, December 31, McGuire earned income of $48,000 and paid dividends of $14,000.
Prepare the entries for Todd Company for the purchase of the stock, share of McGuire income and dividends received from McGuire.