Problemon january 1 2014 the timber company acquired a 12, Ask an Expert

Accounting

Problem:

On January 1, 2014, The Timber Company acquired a 12% interest in the Twig Corporation through the purcahse of 72,000 sahres of Twigs common stock, paying $422,000. During 2014, Twig paid $28,000 in total dividends and reported net income of $95,675. The market price of Twigs common stock was $5.44 per share on December 31, 2014.

Journalize the following:

Timbers stock acquisition
Timbers realized income for 2104
Entry or entries to adjust the investment account to its appropriate 12/31/14 balance.

Note: Be sure to show how you arrived at your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164858

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