! Required information [The following information applies to the questions displayed below.] On January 2, 2024, Sanborn Tobacco Incorporated bought 5% of Jackson Industry's capital stock for $92 million. Jackson Industry's net income for the year ended December 31, 2024, was $122 million. The fair value of the shares held by Sanborn was $102 million at December 31, 2024. During 2024, Jackson declared a dividend of $62 million. 2. Assume that Sanborn sold the stock on January 2, 2025 for $114 million. Prepare the journal entries Sanborn would use to record che sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers n millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 Record the entry to adjust to fair value on the date of sale. 2 Note: Enter debits before credits. Transaction 1 Reser General Journal Clear Debit Credit View general journal >

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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Required information
[The following information applies to the questions displayed below.]
On January 2, 2024, Sanborn Tobacco Incorporated bought 5% of Jackson Industry's capital stock for $92 million. Jackson
Industry's net income for the year ended December 31, 2024, was $122 million. The fair value of the shares held by
Sanborn was $102 million at December 31, 2024. During 2024, Jackson declared a dividend of $62 million.
2. Assume that Sanborn sold the stock on January 2, 2025 for $114 million. Prepare the journal entries Sanborn would use to record
the sale.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
View transaction list
Journal entry worksheet
<
1
2
Record the entry to adjust to fair value on the date of sale.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] On January 2, 2024, Sanborn Tobacco Incorporated bought 5% of Jackson Industry's capital stock for $92 million. Jackson Industry's net income for the year ended December 31, 2024, was $122 million. The fair value of the shares held by Sanborn was $102 million at December 31, 2024. During 2024, Jackson declared a dividend of $62 million. 2. Assume that Sanborn sold the stock on January 2, 2025 for $114 million. Prepare the journal entries Sanborn would use to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). View transaction list Journal entry worksheet < 1 2 Record the entry to adjust to fair value on the date of sale. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal >
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