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On January 2, Yorkshire Company acquired 31% of the outstanding stock of Fain Company for $280,000. For the year ended December 31, Fain Company earned income of $73,000 and paid dividends of $22,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase Investment in Fain Company Stock 280,000 Cash v 280,000 Investment in Fain Company Stock v 22,630 Dec. 31 - Income Interest Revenue x 22,630 Dec. 31 - Dividends Cash v 22,000 Investment in Fain Company Stock v 22,000 X

On January 2, Yorkshire Company acquired 31% of the outstanding stock of Fain Company for $280,000. For the year ended December 31, Fain Company earned income of $73,000 and paid dividends of $22,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase Investment in Fain Company Stock 280,000 Cash v 280,000 Investment in Fain Company Stock v 22,630 Dec. 31 - Income Interest Revenue x 22,630 Dec. 31 - Dividends Cash v 22,000 Investment in Fain Company Stock v 22,000 X

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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On January 2, Yorkshire Company acquired 31% of the outstanding stock of Fain Company for $280,000. For the year ended December 31, Fain Company earned income of $73,000 and paid dividends of $22,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase Investment in Fain Company Stock 280,000 Cash v 280,000 Investment in Fain Company Stock v 22,630 Dec. 31 - Income Interest Revenue x 22,630 Dec. 31 - Dividends Cash v 22,000 Investment in Fain Company Stock v 22,000 X
Transcribed Image Text:On January 2, Yorkshire Company acquired 31% of the outstanding stock of Fain Company for $280,000. For the year ended December 31, Fain Company earned income of $73,000 and paid dividends of $22,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company. Jan. 2 - Purchase Investment in Fain Company Stock 280,000 Cash v 280,000 Investment in Fain Company Stock v 22,630 Dec. 31 - Income Interest Revenue x 22,630 Dec. 31 - Dividends Cash v 22,000 Investment in Fain Company Stock v 22,000 X
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