On January 1, 2020, Pronghorn Corporation purchased 40% of the common shares of River Company for...

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On January 1, 2020, Pronghorn Corporation purchased 40% of the common shares of River Company for $388,000. During the year, River earned net income of $118,000 and paid dividends of $42,000. Prepare the entries for Pronghorn to record the purchase and any additional entries related to this investment in River Company in 2020. (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.) Account Titles and Explanation (To record purchase) (To record share of dividend) (To record share of net income) Debit Credit On January 1, 2020, Pronghorn Corporation purchased 40% of the common shares of River Company for $388,000. During the year, River earned net income of $118,000 and paid dividends of $42,000. Prepare the entries for Pronghorn to record the purchase and any additional entries related to this investment in River Company in 2020. (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.) Account Titles and Explanation (To record purchase) (To record share of dividend) (To record share of net income) Debit Credit

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To record the purchase of 40 of the common shares of River Company by Pronghorn Corporation on Jan... View the full answer