On January 1, 2025, Headland Corporation purchased 40% of the common shares of Sage Company for $192,000. During the year, Sage earned net income of $81,000 and paid dividends of $20.250. Prepare the entries for Headland to record the purchase and any additional entries related to this investment in Sage Company in 2025. (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 Debit Credit
On January 1, 2025, Headland Corporation purchased 40% of the common shares of Sage Company for $192,000. During the year, Sage earned net income of $81,000 and paid dividends of $20.250. Prepare the entries for Headland to record the purchase and any additional entries related to this investment in Sage Company in 2025. (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 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On January 1, 2025, Headland Corporation purchased 40% of the common shares of Sage Company for $192,000. During the year,
Sage earned net income of $81,000 and paid dividends of $20,250.
Prepare the entries for Headland to record the purchase and any additional entries related to this investment in Sage Company in
2025. (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 0 for the amounts)
Account Titles and Explanation
Gain on Sale of investments
Cash
(To record purchase of stock.)
Interest Rever
(To record receipt of dividends.)
Investment income
Tair Value Adjustment
Debit
29692480
1875 12
[0]
1000
Credit
29692488
0000
1875 12
1800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F370bf8b5-86b2-4fbf-a926-2c4c73e93a48%2F37561607-ad8e-48e3-942e-c8dbbb762068%2Fb7qlw1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2025, Headland Corporation purchased 40% of the common shares of Sage Company for $192,000. During the year,
Sage earned net income of $81,000 and paid dividends of $20,250.
Prepare the entries for Headland to record the purchase and any additional entries related to this investment in Sage Company in
2025. (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 0 for the amounts)
Account Titles and Explanation
Gain on Sale of investments
Cash
(To record purchase of stock.)
Interest Rever
(To record receipt of dividends.)
Investment income
Tair Value Adjustment
Debit
29692480
1875 12
[0]
1000
Credit
29692488
0000
1875 12
1800
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