The condensed balance sheet of Fletcher Inc. on January 1, Year 1 is as follows:

Current assets $175,000

Non-current assets $ 750,000

Current liabilities $130,000

Non-current liabilities $ 600,000

Share capital $ 100,000

Retained earnings $ 95,000

Assume that Siler Ltd. purchases 25% of Fletcher. Assume at the end of year 1, Fletcher reports net income for the year of $60,000 and dividends declared of $18,000. Prepare journal entries for Siler.

Answer rating: 100% (QA)

To prepare the journal entries for Siler Ltds purchase of 25 of Fletcher Inc and the sub... View the full answer