On January 1, 2017, Alpha Company purchased a significant influence shares inves
ID: 2564200 • Letter: O
Question
On January 1, 2017, Alpha Company purchased a significant influence shares investment in the Bravo-Zulu Company for $250,000. This investment balance represents 25% of the equity of the Bravo-Zulu Company. During 2017, Bravo-Zulu Company reported Net Income of $25,000 on November 15, 2017 Bravo-Zulu Company paid cash dividends of $10,000 to its shareholders. Use this information to prepare the January 1, November 15 and December 31, 2017 General Journal entry (without explanation.) If no entry is required, then write "No Entry Required."
Explanation / Answer
Jan-01 Investment in Bravo-Zulu 250000 Cash 250000 Nov-15 Cash 2500 Investment in Bravo-Zulu 2500 Dec-31 Investment in Bravo-Zulu 6250 Investment income 6250