On January 1, Hise Corporation purchased a 35% equity in Schoenthaler Company for $220,000. At December 31,

Question:

On January 1, Hise Corporation purchased a 35% equity in Schoenthaler Company for $220,000. At December 31, Schoenthaler declared and paid a $50,000 cash dividend and reported net income of $140,000.

Instructions

Prepare the necessary journal entries for Hise Corporation.

Determine the amount to report as an investment at 31 Dec.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...