On January 2, 2020, Nassau Travel Corp. paid $500,000 cash to acquire 10,000 of Suffolk Corporations 40,000

Question:

On January 2, 2020, Nassau Travel Corp. paid $500,000 cash to acquire 10,000 of Suffolk Corporation’s 40,000 outstanding common shares. Assume that Nassau has significant influence over Suffolk as a result. On October 12, 2020, Suffolk Corp. paid a $100,000 dividend and on December 31, 2020, it reported profit of $400,000 for 2020. Prepare Nassau’s entries on January 2, October 12, and December 31.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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