On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4, Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31 2OY5, Whitworth Company sold all of its investment in Aloof Company stock for $365,640. Journalize the ehtries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4- Dividends Jan. 31, 20Y5 - Sale
On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4, Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31 2OY5, Whitworth Company sold all of its investment in Aloof Company stock for $365,640. Journalize the ehtries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4- Dividends Jan. 31, 20Y5 - Sale
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 10SPA
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