Perk Company owns 30 percent of Storm Company. In 2009, Storm Company earned $120,000 and paid $80,000

Question:

Perk Company owns 30 percent of Storm Company. In 2009, Storm Company earned $120,000 and paid $80,000 in dividends. Prepare entries in journal form for Perk Company’s records on December 31 to reflect this information. Assume that the dividends are received on December 31.