On January 1, Crane Corporation purchased a 25% equity in Helbert Corporation fo

Question

On January 1, Crane Corporation purchased a 25% equity in Helbert Corporation for $152,500. At December 31, Helbert declared and paid a $45,100 cash dividend and reported net income of $241,000 Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit To record dividends received) (To record equity in Helbert Corporation's net income) Attempts: 0 of 3 used

Explanation / Answer

Journal entry :

Date account and explanation debit credit Jan 1 Stock investments 152500 Cash 152500 Dec 31 Cash (45100*25%) 11275   Stock investments 11275 (To record dividend received) Dec 31 Stock investments (241000*25%) 60250 Revenue from stock investments 60250 (To record equity in helbert corporation's net income)

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