22-On January, 2019, ABC Company acquired 30% percent of the voting shares of XYZ Company for OMR 300,000. The investment gives ABC, significant influence over the affairs of XYZ Company. During the year ending December 31, 2019, XYZ Company earned OMR 100,000 Net Income and paid dividend of OMR 70,000. What is the journal entry in the books of ABC Company for the share in the net income under equity method? a. Debit Cash Account OMR 21,000; Credit Investment Income Account OMR 21,000 b. Debit Investment Account OMR 30,000; Credit Investment Income Account OMR 30,000 c. Debit Cash Account OMR 30,000; Credit Investment Account OMR 30,000 d. Debit Investment Account OMR 21,000; Credit Dividend Income Account OMR 21,000
22-On January, 2019, ABC Company acquired 30% percent of the voting shares of XYZ Company for OMR 300,000. The investment gives ABC, significant influence over the affairs of XYZ Company. During the year ending December 31, 2019, XYZ Company earned OMR 100,000 Net Income and paid dividend of OMR 70,000. What is the journal entry in the books of ABC Company for the share in the net income under equity method? a. Debit Cash Account OMR 21,000; Credit Investment Income Account OMR 21,000 b. Debit Investment Account OMR 30,000; Credit Investment Income Account OMR 30,000 c. Debit Cash Account OMR 30,000; Credit Investment Account OMR 30,000 d. Debit Investment Account OMR 21,000; Credit Dividend Income Account OMR 21,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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22-On January, 2019, ABC Company acquired 30% percent of the voting shares of XYZ Company for OMR 300,000. The investment gives ABC, significant influence over the affairs of XYZ Company. During the year ending December 31, 2019, XYZ Company earned OMR 100,000 Net Income and paid dividend of OMR 70,000. What is the journal entry in the books of ABC Company for the share in the net income under equity method?
a.
Debit Cash Account OMR 21,000; Credit Investment Income Account OMR 21,000
b.
Debit Investment Account OMR 30,000; Credit Investment Income Account OMR 30,000
c.
Debit Cash Account OMR 30,000; Credit Investment Account OMR 30,000
d.
Debit Investment Account OMR 21,000; Credit Dividend Income Account OMR 21,000
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