Equity Method On January 2, Yorkshire Company acquired 33% of the outstanding stock of Fain Company for $300,000. For the year ended December 31, Fain Company earned income of $78,000 and paid dividends of $24,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase Investment in Fain Company Stock 300,000 Cash 300,000 Dec. 31 - Income Dec. 31 - Dividends

Equity Method On January 2, Yorkshire Company acquired 33% of the outstanding stock of Fain Company for $300,000. For the year ended December 31, Fain Company earned income of $78,000 and paid dividends of $24,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase Investment in Fain Company Stock 300,000 Cash 300,000 Dec. 31 - Income Dec. 31 - Dividends

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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