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Problem D-2A (Algo) Account for investments using the equity method (LO D-3) As a long-term investment at the beginning of the year, Willie Winn Track Shoes purchased 20% of Betty Will Company's 26 million shares outstanding for $170 million. During the year, Betty Will earned net income of $122 million and distributed cash dividends of $1.30 per share. Required: Record for Willie Winn Track Shoes the purchase of the investment and its share of Betty Will's net income and dividends using the equity method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Problem D-2A (Algo) Account for investments using the equity method (LO D-3) As a long-term investment at the beginning of the year, Willie Winn Track Shoes purchased 20% of Betty Will Company's 26 million shares outstanding for $170 million. During the year, Betty Will earned net income of $122 million and distributed cash dividends of $1.30 per share. Required: Record for Willie Winn Track Shoes the purchase of the investment and its share of Betty Will's net income and dividends using the equity method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

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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Problem D-2A (Algo) Account for investments using the equity method (LO D-3) As a long-term investment at the beginning of the year, Willie Winn Track Shoes purchased 20% of Betty Will Company's 26 million shares outstanding for $170 million. During the year, Betty Will earned net income of $122 million and distributed cash dividends of $1.30 per share. Required: Record for Willie Winn Track Shoes the purchase of the investment and its share of Betty Will's net income and dividends using the equity method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5,50).) No 1 2 3 Transaction 1 2 3 Investments Cash Investments Equity Income Cash Investments Answer is complete but not entirely correct. General Journal 00 00 00 Debit 170.00 22.40 33.80 Credit 170.00 22.40 33.80 x
Transcribed Image Text:Problem D-2A (Algo) Account for investments using the equity method (LO D-3) As a long-term investment at the beginning of the year, Willie Winn Track Shoes purchased 20% of Betty Will Company's 26 million shares outstanding for $170 million. During the year, Betty Will earned net income of $122 million and distributed cash dividends of $1.30 per share. Required: Record for Willie Winn Track Shoes the purchase of the investment and its share of Betty Will's net income and dividends using the equity method. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5,50).) No 1 2 3 Transaction 1 2 3 Investments Cash Investments Equity Income Cash Investments Answer is complete but not entirely correct. General Journal 00 00 00 Debit 170.00 22.40 33.80 Credit 170.00 22.40 33.80 x
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