On January 2, Ubuy.com paid $230,000 to acquire 25 percent (23,000 shares) of th

Question

On January 2, Ubuy.com paid $230,000 to acquire 25 percent (23,000 shares) of the common stock of E- Net Corporation. The accounting period for both companies ends December 31. July 2 E-Net declared and paid a cash dividend of $4 per share. Dec. 31 E-Net reported net income of $330,000. Required Prepare the journal entries for the purchase on January 2 and for each of the above transactions that occurred during the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the acquisition of 23,000 shares (25%) of the common stock of E-Net Corporation. Note: Enter debits before credits. Date General Journal Debit Credit Jan 02 Record entry Clear entry View general journal

Explanation / Answer

Date General Journal Debit Credit 2-Jan investment 230,000 cash 230,000 2-Jul Cash 92000 investment (23000*4) 92,000 31-Dec investment 82500 investment income (330,000*25%) 82,500

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.