As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies inc's 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the purchase of AMC Supplies shares for $620,000 as a long-term Investment Note: Enter debits before credits Event General Journal Debit Credit As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Complete this question by entering your answers in the tabs below. Required i Required 2 Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (IF no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record Painters' Equipment's share of AMC Supplies $390,000 net income. Notter det before cred Event General Journal Debit Credit As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659,000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the cash dividend of 20 cents per share. Note: Enter debits before credits Event General Journal Debit Credit As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659.000. Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
