Pam Corporation owned a 90 percent interest in Sun Corporation, and during 2015 the following changes occurred in Sun's equity
During 2016, Sun's net income was $280,000, and it declared $40,000 dividends each quarter of the year.
Pam reduced its interest in Sun to 80 percent on July 1, 2016, by selling Sun shares for $120,000.
1. Prepare the journal entry on Pam's books to record the sale of Sun shares as of the actual date of sale.
2. Prepare the journal entry on Pam's books to record the sale of Sun shares as of January 1, 2016.
3. Prepare a schedule to reconcile the answers to parts 1 and 2.
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...
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