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Prepare the journal entry required on 17 March 20X6 by Thanushan: Prepare the journal entry required to record the receipt of dividends from Sheth: Prepare the journal entry required to record Thanushan's share of Sheth's earnings:

Prepare the journal entry required on 17 March 20X6 by Thanushan: Prepare the journal entry required to record the receipt of dividends from Sheth: Prepare the journal entry required to record Thanushan's share of Sheth's earnings:

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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On 17 March 20X6, Thanushan Company makes an investment of $815,000 to purchase 40% of the shares of Sheth Ltd. The purchase results in significant influence over Sheth Ltd. Sheth declared paid dividends totalling $12,000 on 30 June 20X6. Sheth Ltd had earnings of $68,000 for the year. Required: Prepare the journal entries required for 20X6 using the equity method. Prepare the journal entry required on 17 March 20X6 by Thanushan: Prepare the journal entry required to record the receipt of dividends from Sheth: Prepare the journal entry required to record Thanushan's share of Sheth's earnings:
Transcribed Image Text:On 17 March 20X6, Thanushan Company makes an investment of $815,000 to purchase 40% of the shares of Sheth Ltd. The purchase results in significant influence over Sheth Ltd. Sheth declared paid dividends totalling $12,000 on 30 June 20X6. Sheth Ltd had earnings of $68,000 for the year. Required: Prepare the journal entries required for 20X6 using the equity method. Prepare the journal entry required on 17 March 20X6 by Thanushan: Prepare the journal entry required to record the receipt of dividends from Sheth: Prepare the journal entry required to record Thanushan's share of Sheth's earnings:
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