Sees Candy Company had outstanding 30,000 shares of common stock, par value $10 per share. On January 1, 2069, Sees Candy Company purchased some of these shares at $25 per share, with the intent of holding them for a chocolaty-long time. At the end of 2069, Sees Candy Company reported the following: Net income, $50,000, and cash dividends declared and paid during the year, $25,500. The market value of Sees Candy Company stock at the end of 2010 was $22 per share.

Requirement 1:
Give the journal entries for Sees Candy Company at the dates indicated for each of the two independent cases. If purchased CASE A 3,600 shares and Case B 10,500 shares.
a). to record the acquisitions of Sees Candy Company at January 1, 2069:
Case A – 12%
Case B – 35%
b). to recognize the income reported by Sees Candy Company for 2069:
Case A – 12%
Case B – 35%
c). to recognize the dividends declared and paid by Sees Candy Company.
Case A- 12%
Case B – 35%
d). Entry to recognize the market value effect at the end of 2069
Case A – 12%
Case B- 35%

Requirement 2:
Complete the following schedule to show the separate amounts that should be reported on the 2010 financial statements of Sees Candy Company:
Balance Sheet:

Long-Term Assets: Case A: 12% Case B: 35%
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Stock Holders Equity
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