Flint Corporation purchased for $319,000 a 30% interest in Murphy, Inc. This investment enables Flint to exert significant influence over Murphy. During the year, Murphy earned net income of $193,000 and paid dividends of $54,000. Prepare Flint's journal entries related to this investment. (List all debit entries before credit entries. 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 O for the amounts.) Account Titles and Explanation (To record the purchase.) (To record the net income.) (To record the dividend.) Debit Credit
Flint Corporation purchased for $319,000 a 30% interest in Murphy, Inc. This investment enables Flint to exert significant influence over Murphy. During the year, Murphy earned net income of $193,000 and paid dividends of $54,000. Prepare Flint's journal entries related to this investment. (List all debit entries before credit entries. 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 O for the amounts.) Account Titles and Explanation (To record the purchase.) (To record the net income.) (To record the dividend.) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flint Corporation purchased for $319,000 a 30% interest in Murphy, Inc. This investment enables Flint to exert significant influence
over Murphy. During the year, Murphy earned net income of $193,000 and paid dividends of $54,000.
Prepare Flint's journal entries related to this investment. (List all debit entries before credit entries. 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 O for the
amounts.)
Account Titles and Explanation
(To record the purchase.)
(To record the net income.)
(To record the dividend.)
Debit
Credit
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