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

Question

On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $196,900. At December 31, Helbert declared and paid a $51,500 cash dividend and reported net income of $172,000. 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 0 for the amounts.) Determine the amount to be reported as an investment in Helbert stock at December 31.

Explanation / Answer

jan 1 common stock account   $196,900

cash account                                                 196900

dec31 cash account 51500

dividends paid                                 51500

dec 31 herbert account 43000

p&l account (net income)                   43000

The amount to be reported as investment in herbert is $196,900

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