Flint Corp. is a medium$-$sized corporation specializing in quarrying stone for building construction. The company has long dominated the market, at one time achieving a $70\%$ market penetration. During prosperous years, the company$$s profits, coupled with a conservative dividend policy, resulted in funds available for outside investment. Over the years, Flint has had a policy of investing idle cash in equity securities$.$ In particular, Flint has made periodic investments in the company$$s principal supplier, Norton Industries. Although the firm currently owns $12\%$ of the outstanding common stock of Norton Industries, Flint does not have significant influence over the operations of Norton Industries. Prepare the entries for the Norton investment, assuming that Flint owns $25\%$ of Norton's shares. Norton reported income of

$$500,000$ in $2020$ and paid cash dividends of $$103,000.($Credit account titles are automatically indented when amount is entered. Do

not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$(1)$

$($To record revenue.$)$

$(2)$

$($To record dividends.$)$

Cheryl Thomas has recently joined Flint as assistant controller, and her first assignment is to prepare the $2020$ year$-$end adjusting entries for the accounts that are valued by the $$fair value$$ rule for financial reporting purposes. Thomas has gathered the following information about Flint$$s pertinent accounts:

Flint has equity securities related to Delaney Motors and Patrick Electric. During $2020,$ Flint purchased $104,000$ shares of Delaney Motors for $$1,379,000$; these shares currently have a fair value of $$1,646,000.$ Flint$$s investment in Patrick Electric has not been profitable; the company acquired $47,000$ shares of Patrick in April $2020$ at $$21$ per share, a purchase that currently has a value of $$703,000.$

Prior to $2020,$ Flint invested $$22,359,000$ in Norton Industries and has not changed its holdings this year. This investment in Norton Industries was valued at $$21,462,000$ on December $31,2019.$ Flint$$s $12\%$ ownership of Norton Industries has a current fair value of $$22,095,000$ on December $31,2020.$

Part $($c$)$:

Prepare the entries for the Norton investment, assuming that Flint owns $25\%$ of Norton$$s shares. Norton reported income of $$500,000$ in $2020$ and paid cash dividends of $$103,000.$Flint Corp. is a medium$-$sized corporation specializing in quarrying stone for building construction. The company has long dominated

the market, at one time achieving a $70\%$ market penetration. During prosperous years, the company's profits, coupled with a

conservative dividend policy, resulted in funds available for outside investment. Over the years, Flint has had a policy of investing idle

cash in equity securities$.$ In particular, Flint has made periodic investments in the company's principal supplier, Norton Industries.

Although the firm currently owns $12\%$ of the outstanding common stock of Norton Industries, Flint does not have significant influence

over the operations of Norton Industries.

Cheryl Thomas has recently joined Flint as assistant controller, and her first assignment is to prepare the $2020$ year$-$end adjusting

entries for the accounts that are valued by the "fair value" rule for financial reporting purposes. Thomas has gathered the following

information about Flint' pertinent accounts.

Flint has equity securities related to Delaney Motors and Patrick Electric. During $2020,$ Flint purchased $104,000$ shares of

Delaney Motors for $$1,379,000$; these shares currently have a fair value of $$1,646,000.$ Flint' investment in Patrick Electric

has not been profitable; the company acquired $47,000$ shares of Patrick in April $2020$ at $$21$ per share, a purchase that

currently has a value of $$703,000.$

Prior to $2020,$ Flint invested $$22,359,000$ in Norton Industries and has not changed its holdings this year. This investment in

Norton Industries was valued at $$21,462,000$ on December $31,2019.$ Flint' $12\%$ ownership of Norton Industries has a

current fair value of $$22,095,000$ on December $2020.$Prepare the entries for the Norton investment, assuming that Flint owns $25\%$ of Norton's shares. Norton reported income of

$$500,000$ in $2020$ and paid cash dividends of $$103,000.($Credit account titles are automatically indented when amount is entered. Do

not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$(1)$

$($To record revenue.$)$

$(2)$

$($To record dividends.$)$