10056Sun Edn Wew Hiatory Bookmarks People Window Help x a of y 1, 201%,te ves +

Question

10056Sun Edn Wew Hiatory Bookmarks People Window Help x a of y 1, 201%,te ves + t-Google Docs Test 1-Part 2 × Help Save& Exit Subm Part 2 On January 1.2018, Alamar Corporation acquired a 39 percent interest in Burks, Inc., for $224,000 On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $354,000. During 2018, Burks reported net income of $84,000 and declared and pald tash dividends of $26,000. Alamar sold inventory costing $24,000 to Burks during 2018 for $37,000. Burks used all of this merchandise in its operations during 2018. Prepare all of Alamar's 2018 journal entries to apply the equity method to this investment of no entry is required for a transactlon/event, select "No journal entry required" in the first account field.) Journal entry worksheet est in Burks MacBook 3 tion command command option

Explanation / Answer

Date Account title and explanation Debit Credit Jan, 1 2018 Investment in Bukrs, Inc. 224000 Cash 224000 (To record Investment made) 2 Investment in Bukrs, Inc. 32760 Share in Revenue 32760 (To record share in net income) 3 Dividend / Retained Earnings 26000 Dividend Payable / Cash 26000 (To record dividend Payable) 4 Cash 10140 Investment in Bukrs, Inc. 10140 (To record Receipt of Dividend)

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