Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the...
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Accounting
Idle Corporation has been acquiring shares of Fast Track Enterprises at book value for the last several years. Fast Track provided data including the following:
| 20X2 | 20X3 | 20X4 | 20X5 | |||||||||
| Net Income | $ | 43,000 | $ | 60,000 | $ | 43,000 | $ | 53,000 | ||||
| Dividends | 23,000 | 23,000 | 13,000 | 23,000 | ||||||||
Fast Track declares and pays its annual dividend on November 25 each year. Its net book value on January 1, 20X2, was $254,000. Idle purchased shares of Fast Track on three occasions:
| Date | Percent of Ownership Purchased | Amount Paid | ||||
| January 1, 20X2 | 15 | % | $ | 38,100 | ||
| July 1, 20X3 | 10 | 30,480 | ||||
| January 1, 20X5 | 19 | 82,042 | ||||
Required: Give the journal entries to be recorded on Idles books in 20X5 related to its investment in Fast Track. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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