FULL SCREEN CALCULATOR PRINTER VERSION BACK ES Rosco Company purchased 35,000 shares of common stock of Paxton Corporation as a long-term investment for $900,000. During the Paxton Corporation reported net income of $300,000 and paid dividends of $100,000. Assuming that the 35,000 shares represent a 10% Interest in Paxton Corporation: 1. Prepare the journal entry to record the investment in Paxton stock 2. Prepare any entries that Rosco Company should make in accounting for its investment in Paxton stock during the year. 3. What is the balance of the Stock Investments account on Rosco Company's books at the end of the year? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit Cost Method I 2. JRCES 3. Stock Investments account balance SHOW LIST OF ACCOUNTS Assuming that the 35,000 shares represent a 20% interest in Paxton Corporation: 1. Prepare the journal entry to record the investment in Paxton stock. 2. Prepare any entries that Rosco Company should make in accounting for its investment in Paxton stock during the year. 3. What is the balance of the Stock Investments account on Rosco Company's books at the end of the year? (Credit account titles are automatically indented when the amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Equity Method Credit 1. E DE AER CAR neel (To record purchase of 35,000 shares of Paxton's Corporation stock) 2. (To record 20% equity in Paxton's net income) (To record dividends received) 3. Stock Investments account balance SHOW LIST OF ACCOUNTS