On January 1, Vince SpA purchased a 25% equity in Morelli SpA for 180,000. At December 31,
Question:
On January 1, Vince SpA purchased a 25% equity in Morelli SpA for £180,000. At December 31, Morelli declared and paid a £36,000 cash dividend and reported net income of £160,000.
Instructions
a. Journalize the transactions.
b. Determine the amount to be reported as an investment in Morelli at December 31.
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...
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a Jan 1 Share Investments 180000 Cash 180000 Dec31 Cash 36000 X 25 9000 Share Investments 900...View the full answer
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Related Book For 
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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