Question

On January 1, Sheridan Corporation purchased a 25% equity investment in Shane Corporation for $156,100. At December 31, Shane declared and paid a $77,200 cash dividend and reported net income of $396,400.

Answer 1

Answer:

general entry are as given below

Explanation:

given data

purchased = 25% equity

investment = $156,100

cash dividend = $77,200

net income = $396,400

to find out

journal entry

solution

general entry are as given below

Date                  Account titles                            debit                credit

January 1          Stock Investments                     $156,100

                         Cash                                                                    $156,100

December 31    Cash ($77,200 × 25%)              $19,300

                         Stock Investments                                              $19,300

December 31    stock Investments                     $99,100

                        Revenue from Stock Investments                      $99,100

                          ($396,400 × 25%)