Equity Investment

On 01/05/20, Red Company pays $700,000 to acquire a 30% interest (200,000 shares) of White Co. White Co. declares and and pays a cash dividend of .30 cents per share on 06/17/20. At 12/31/20 White Co. . reports net income of $300,000 for the year.

REQUIRED: Using proper form, record the following Journal Entries

1) On 01/05/20 Purchase of Equity Investment in White Co.

2) On 06/17/20 , Receipt of Cash Dividend

3) On 12/31/20, White Co. Reports Net Income