Question

On January 1, 2010, Jones Company acquires a 30% interest in Fink Company by purchasing 3,000 of its 10,000 common shares for $16 per share and obtains significant influence. On the date of acquisition, the net assets of Fink Company were as shown here:


During 2010 Fink Company earned income of $22,000 and paid dividends of $6,000.

Required
Prepare all journal entries on Jones Company’s books to record the acquisition, dividends, and income from the investment in Fink Company. Show supportingcalculations.


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  • CreatedDecember 09, 2013
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