On January 1 Kwun Corporation purchased a 25% equity in Connors Corporation for $180,000. At December 31 Connors declared and paid a $60,000 cash dividend and reported net income of $200,000. Instructions (a) Journalize the transactions. (b) Determine the amount to be reported as an investment in Connors stock at December 31.
Chapter 16, Exercises #7
On January 1 Kwun Corporation purchased a 25% equity in Connors Corporation for $180,000. At December 31 Connors declared and paid a $60,000 cash dividend and reported net income of $200,000.
Instructions
(a) Journalize the transactions.
(b) Determine the amount to be reported as an investment in Connors stock at December 31.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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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(a) Jan. 1 Stock Investments .............................................. 180,000 Cash ...…View the full answer
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