On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4, Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31 2OY5, Whitworth Company sold all of its investment in Aloof Company stock for $365,640. Journalize the ehtries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4- Dividends Jan. 31, 20Y5 - Sale
On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4, Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31 2OY5, Whitworth Company sold all of its investment in Aloof Company stock for $365,640. Journalize the ehtries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank. Jan. 2, 20Y4 - Purchase Dec. 31, 20Y4 - Income Dec. 31, 20Y4- Dividends Jan. 31, 20Y5 - Sale
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter14: Intercorporate Investments In Common Stock
Section: Chapter Questions
Problem 16E
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Question
![Equity investments: 20%-50% ownership
On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4,
Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof
Company stock for $365,640.
Journalize the ehtries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the
sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank.
Jan. 2, 20Y4 - Purchase
Dec. 31, 20Y4 Income
Dec. 31, 20Y4 - Dividends
Jan. 31, 20Y5 - Sale](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2eab21cb-1cbc-4339-9c62-335ff85c7618%2F795b99b7-762a-4dd4-b9e7-a6f35f2e046c%2Fgw47bw4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Equity investments: 20%-50% ownership
On January 2, 20Y4, Whitworth Company acquired 28% of the outstanding stock of Aloof Company for $350,000. For the year ended December 31, 20Y4,
Aloof Company earned income of $91,000 and paid dividends of $28,000. On January 31 20Y5, Whitworth Company sold all of its investment in Aloof
Company stock for $365,640.
Journalize the ehtries for Whitworth Company for the purchase of the stock, the share of Aloof income, the dividends received from Aloof Company, and the
sale of the Aloof Company stock. If an amount box does not require an entry, leave it blank.
Jan. 2, 20Y4 - Purchase
Dec. 31, 20Y4 Income
Dec. 31, 20Y4 - Dividends
Jan. 31, 20Y5 - Sale
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