On January 1, Sheridan Corporation purchased a 25% equity investment in Shane Corporation for $156,100. At December 31, Shane declared and paid a $77,200 cash dividend and reported net income of $396,400.

Question

Knox

Business

11 June, 05:21

On January 1, Sheridan Corporation purchased a 25% equity investment in Shane Corporation for $156,100. At December 31, Shane declared and paid a $77,200 cash dividend and reported net income of $396,400.

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Answers (1)

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Kaliyah Kaufman · Answer 1

general entry are as given below

Explanation:

given data

purchased = 25% equity

investment = $156,100

cash dividend = $77,200

net income = $396,400

to find out

journal entry

solution

general entry are as given below

Date Account titles debit credit

January 1 Stock Investments $156,100

Cash $156,100

December 31 Cash ($77,200 * 25%) $19,300

Stock Investments $19,300

December 31 stock Investments $99,100

Revenue from Stock Investments $99,100

($396,400 * 25%)