Entries for equity investments: 20%50% ownership

On January 6, 20Y8, Bulldog Co. purchased 25% of the outstanding common stock of $159,000. Gator Co. paid total dividends of $20,700 to all shareholders on June 30, 20Y8. Gator had a net loss of $30,200 for 20Y8.

Question Content Area

a. Journalize Bulldog's purchase of the stock, receipt of the dividends, and the adjusting entry for the equity loss in Gator Co. stock.

b. Compute the balance of Investment in Gator Co. Stock on December 31, 20Y8.