On January 1 of the current year, PurchaseAgent.com acquired 35 percent (800,000 shares) of the common stock

Question:

On January 1 of the current year, PurchaseAgent.com acquired 35 percent (800,000 shares) of the of E-Transaction Corporation. The accounting period for both companies ends December 31, Give the journal entries for each of the following transactions that occurred during the current year for PurchaseAgent.com:
July. 2 E-Transaction declared and paid a cash of $5 per share.
Dec. 31 E-Transaction reported net income of $400,000.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...