Required information [The following information applies to the questions displayed below.] As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000. 2. Assume significant influence was acquired. Record the transactions from the purchase through the end of the year, including any adjusting entry for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction 1 1 Investments Cash 2 2 Investments 3 3 4 4 Answer is complete but not entirely correct. General Journal Debit Credit 360,000 360,000 Equity Income Cash Investments Investments 27,000 27,000 15,000 15,000 27,000 27,000
Required information [The following information applies to the questions displayed below.] As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000. 2. Assume significant influence was acquired. Record the transactions from the purchase through the end of the year, including any adjusting entry for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction 1 1 Investments Cash 2 2 Investments 3 3 4 4 Answer is complete but not entirely correct. General Journal Debit Credit 360,000 360,000 Equity Income Cash Investments Investments 27,000 27,000 15,000 15,000 27,000 27,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 123.
![Required information
[The following information applies to the questions displayed below.]
As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the
beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed
cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000.
2. Assume significant influence was acquired. Record the transactions from the purchase through the end of the year, including any
adjusting entry for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No
Journal Entry Required" in the first account field.)
No
Transaction
1
1
Investments
Cash
2
2
Investments
3
3
4
4
Answer is complete but not entirely correct.
General Journal
Debit
Credit
360,000
360,000
Equity Income
Cash
Investments
Investments
27,000
27,000
15,000
15,000
27,000
27,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F36ed651f-2b40-43a8-a01f-93616dceb27b%2F45a661df-14dd-43cb-ba51-3168cdbdaa37%2Fhkr3ndg_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
As a long-term investment, Fair Company purchased 20% of Midlin Company's 300,000 shares for $360,000 at the
beginning of the reporting year of both companies. During the year, Midlin earned net income of $135,000 and distributed
cash dividends of $0.25 per share. At year-end, the fair value of the shares is $375,000.
2. Assume significant influence was acquired. Record the transactions from the purchase through the end of the year, including any
adjusting entry for the investment's fair value, if appropriate. (If no entry is required for a particular transaction/event, select "No
Journal Entry Required" in the first account field.)
No
Transaction
1
1
Investments
Cash
2
2
Investments
3
3
4
4
Answer is complete but not entirely correct.
General Journal
Debit
Credit
360,000
360,000
Equity Income
Cash
Investments
Investments
27,000
27,000
15,000
15,000
27,000
27,000
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