Equity investments: 20%–50% ownership On January 2, 20Y4, Whitworth Company acquired 31% of the outstanding stock of Aloof Company for $300,000. For the year ended December 31, 20Y4, Aloof Company earned income of $78,000 and paid dividends of $24,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $314,740. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale
Equity investments: 20%–50% ownership On January 2, 20Y4, Whitworth Company acquired 31% of the outstanding stock of Aloof Company for $300,000. For the year ended December 31, 20Y4, Aloof Company earned income of $78,000 and paid dividends of $24,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $314,740. Journalize the entries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4 - Dividends Jan. 31, 20Y5 - Sale
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 92.4C
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Equity investments: 20%–50% ownership
On January 2, 20Y4, Whitworth Company acquired 31% of the outstanding stock of Aloof Company for $300,000. For the year ended December 31, 20Y4, Aloof Company earned income of $78,000 and paid dividends of $24,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof Company stock for $314,740.
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