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H3Ko H3Ko
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8 years ago
Maize Corporation pays $532,000 for 100,000 shares to acquire 45% common stock of Teal Investments, Inc. on January 5, 2017. Maize Corporation sells 20,000 shares for $40,000 on January 6, 2017. Which of the following is the correct journal entry for the transaction on January 6, 2017? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A) Long-term InvestmentsTeal Investments, Inc.   106,400   
     Cash      40,000
     Loss on Disposal      66,400

B) Long-term InvestmentsTeal Investments, Inc.   106,400   
     Cash      106,400

C) Cash   106,400   
     Long-term InvestmentsTeal Investments, Inc.      106,400

D) Cash   40,000   
Loss on Disposal   66,400   
     Long-term InvestmentsTeal Investments, Inc.      106,400
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Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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TanksTanks
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8 years ago
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H3Ko Author
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8 years ago
YES! Can't believe I got this one right. Appreciate the confirmation
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