On January 1, 2017, Splish Corporation purchased 20% of the common shares of Blossom Company for...
On January 1, 2017, Splish Corporation purchased 20% of the common shares of Blossom Company for $164,000. During the year, Blossom earned net income of $79,000 and paid dividends of $19,750. Prepare the entries for Splish to record the purchase and any additional entries related to this investment in Blossom Company in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit (To record purchase of stock.) (To record receipt of dividends.) (To record revenue.)
Homework Answers
Journal
|
Date |
Account title |
Debits |
Credits |
|
Jan. 1 |
Stock investments |
164,000 |
|
|
Cash |
164,000 |
||
| (To record purchase of stock.) | |||
|
Dec. 31 |
Stock investments (79,000 x 20%) |
15,800 |
|
|
Revenue from investment in Blossom Company |
15,800 |
||
| (To record revenue.) | |||
|
Dec. 31 |
Cash |
3,950 |
|
|
Stock investments (19,750 x 20%) |
3,950 |
||
| (To record receipt of dividends.) |
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