Visage Cosmetics, a public company, acquires 40 of Image Fashion Inc 's 30,000 common shares for $18 per share on January 2, 2017 On June 15, Image Fashion pays a cash dividend of $30,000 On December 31, Image Fashion reports profit of $380,000 for the year At December 31, Image Fashion shares are ...

a 2017 Jan 2 Investment in Associate 216000 Cash 30000 40 18 2160 ...

Visage Cosmetics, a public company, acquires 40% of Image Fashion Inc.'s 30,000 common shares for $18 per

Question:

Visage Cosmetics, a public company, acquires 40% of Image Fashion Inc.'s 30,000 common shares for $18 per share on January 2, 2017. On June 15, Image Fashion pays a cash of $30,000. On December 31, Image Fashion reports profit of $380,000 for the year. At December 31, Image Fashion shares are trading at $22 per share.
Instructions
(a) Prepare the required journal entries to record the Image Fashion Inc. investment assuming significant influence exists.
(b) Determine the balance in the investment account on December 31, 2017, Visage Cosmetics' year end.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...