Jackson Corporation purchased shares of Phillips Corporation in the following sequence:

The book value of Phillips's net assets at January 1, 20X6, was \(\$ 200,000\). Each year since Jackson first purchased shares, Phillips has reported net income of \(\$ 70,000\) and paid dividends of \(\$ 20,000\). The amount paid in excess of the book value of Phillips Corporation's net assets was attributed to the increase in the value of identifiable intangible assets with a remaining life of five years at the date the shares of Phillips Corporation were purchased. Phillips has had 10,000 shares of voting common stock outstanding throughout the four-year period.
\section*{Required}
Give the journal entries recorded on the books of Jackson Corporation in 20X9 related to its investment in Phillips Corporation.

Transcribed Image Text:

Date January 1, 20X6 Number of Shares Purchased 1.000 shares Amount Paid $25.000 January 1, 20X8 500 shares 15,000 January 1, 20X9 2.000 shares 70.000