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On January 1, Wildhorse Corporation purchased a 25% equity investment in Shane Corporation for $148,900. At December 31, Shane declared and paid a $84,400 cash dividend and reported net income of $385,900. (a) Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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.) Date Jan. 1 Dec. 31 + + Account Titles and Explanation (To record dividend) (To record net income) Debit T Credit

On January 1, Wildhorse Corporation purchased a 25% equity investment in Shane Corporation for $148,900. At December 31, Shane declared and paid a $84,400 cash dividend and reported net income of $385,900. (a) Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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.) Date Jan. 1 Dec. 31 + + Account Titles and Explanation (To record dividend) (To record net income) Debit T Credit

FINANCIAL ACCOUNTING
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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A1) Hello! I need urgent help with the following accounting question. The promt and numbers are attatched below - we have to journalize the transactions. Thank you!

**Educational Example: Journalizing Transactions Related to Equity Investment** On January 1, Wildhorse Corporation purchased a 25% equity investment in Shane Corporation for $148,900. At December 31, Shane declared and paid an $84,400 cash dividend and reported net income of $385,900. **Instructions:** Journalize the transactions. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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. **Journal Entry Table:** - **Date:** There are two options visible in the dropdown: Jan. 1 and Dec. 31 - **Account Titles and Explanation:** Space is provided to enter or select the relevant accounts and explanations for each journal entry. - **Debit and Credit Columns:** Enter the respective amounts for debits and credits. **Transaction Entries:** 1. Entry for January 1 - (Spaces for accounts and amounts are left blank for user input) 2. Entry for December 31 - **(To record dividend)**: Users should input the accounts and amounts related to receiving the dividend. - **(To record net income)**: Users should input the accounts and amounts related to the recognition of net income from the investment. This exercise helps in understanding how to reflect investment-related transactions in the financial records accurately.
Transcribed Image Text:**Educational Example: Journalizing Transactions Related to Equity Investment** On January 1, Wildhorse Corporation purchased a 25% equity investment in Shane Corporation for $148,900. At December 31, Shane declared and paid an $84,400 cash dividend and reported net income of $385,900. **Instructions:** Journalize the transactions. Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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. **Journal Entry Table:** - **Date:** There are two options visible in the dropdown: Jan. 1 and Dec. 31 - **Account Titles and Explanation:** Space is provided to enter or select the relevant accounts and explanations for each journal entry. - **Debit and Credit Columns:** Enter the respective amounts for debits and credits. **Transaction Entries:** 1. Entry for January 1 - (Spaces for accounts and amounts are left blank for user input) 2. Entry for December 31 - **(To record dividend)**: Users should input the accounts and amounts related to receiving the dividend. - **(To record net income)**: Users should input the accounts and amounts related to the recognition of net income from the investment. This exercise helps in understanding how to reflect investment-related transactions in the financial records accurately.
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