Reden Corporation purchased 35 percent of Montgomery Company’s common stock on January 1, 20X9, at underlying book value of $226,100. Montgomery’s balance sheet contained the following stockholders’ equity balances:
| Preferred Stock ($5 par value, 48,000 shares issued and outstanding) | $ | 240,000 | |
| Common Stock ($1 par value, 136,000 shares issued and outstanding) | 136,000 | ||
| Additional Paid-In Capital | 185,000 | ||
| Retained Earnings | 325,000 | ||
| Total Stockholders’ Equity | $ | 886,000 | |
Montgomery’s preferred stock is cumulative and pays a 5 percent annual dividend. Montgomery reported net income of $100,000 for 20X9 and paid total dividends of $43,000.
Required:
Give the journal entries recorded by Reden Corporation for 20X9 related to its investment in Montgomery Company common stock.(If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
1.Record the purchase of Montgomery Company stock.
| account | debit | credit |
| Investment in Montgomery comopany stock | 226100 | |
| cash | 226100 |
2).Record the dividend from Montgomery Company.
| account | debit | credit |
| Cash | ||
| nvetment in Montgomery company stock |
3)Record the equity-method income.s
| Account | Debit | Credit |
| Investment in Montgomery Company stock | ||
| Income from Montgomery Company |
I already answered the 1st journal entery and gave the answers for the correct accounts for all. I just need the numbers. ( it is not 15050 either)
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