Question

The following transactions relate to Lucas Company's long-term investments. Laird did not own any long-term investments prior to these transactions. Complete the necessary journal entries. 2014 Sept 8Purchased 1.000 share of Pacman Inc. common stock for 80.000 cash. These shares represent 30% of Pacman's outstanding shares. Oct 1 Purchased 2,000 shares of ABC common stock for 60,000 cash as a long-term investment. These share represent less than 1% ownership in ABC. Oct 16Purchases as a long-term investment 1,000 shares of Mango Computer common stock for 40,000 cash. These shares are less than 1% of Mango's outstanding shares. Nov 1 Received 5.000 cash dividend from Pacman. Nov 30Received 3.000 cash dividend from ABC. Dec 14Received 1, 400 cash dividend from Mango. Dec 31Pacman's net income for this year is 70,000. Dec 31 Fair values for the investments in equity securities are Ragman, 84,000; ABC, 48,000 and Mango Computer, 45,000. 2015 Jan 2Sold Racman Inc., shares for 108,000 cash. May 29Received 3.100 cash dividend from ABC. June 14Received 1, 600 cash dividend from Mango. Aug 17Sold ABC stock for 52,000 cash. Aug 19Purchased 2,000 shares of Corey-Cola common stock for 50,000 cash as a long-term investment. The stock represents less than 5% ownership in Corey-Cola. Dec 15Received 1.800 cash dividend from Mango. Dec 31 Fair values of the investments in equity securities are ABC. 39.000, and Corey-Cola. 48,000.