Question - On January 2, 2012, Norwin Company purchased 1000 shares of oslo Company common stock for $30000.the stock has a par value of $10 and is part of the total stock outstanding of $20000 shares of oslo company. Norwin Company intends the stock to be available for sale. Total stockholders' equity of Oslo Company on January 2, 2012 was $600000.
Prepare the necessary journal entries on the book of Norwin Company for the following transactions.
a. 1/2/2012 Norwin purchases the shares described above.
b.12/31/2012:Norwin receives a $.75 per share dividend from Oslo , and Oslo announces a net income for 2012 of $250000.
c. 12/31/2012:According to the Wall Street Journal , Oslo common is selling for $27 per share. Norwin's management views this decline as being only temporary in nature. Oslo's common is Norwin's only available for sale security.
d. 2/15/2013: Norwin sells 500 of the shares purchased on january 2, 2012 at $32 per share.