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 ($1 par value, 136,000 shares issued and outstanding)||136,000|
|Additional Paid-In Capital||185,000|
|Total Stockholders’ Equity||$||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.
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.
|Investment in Montgomery comopany stock||226100|
2).Record the dividend from Montgomery Company.
|nvetment in Montgomery company stock|
3)Record the equity-method income.s
|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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