Equity Method

On January 2, Leonard Company acquired 29% of the outstanding stock of Bristol Company for $360,000. For the year ended December 31, Bristol Company earned income of $94,000 and paid dividends of $29,000.

Prepare the entries for Leonard Company for the purchase of the stock, the share of Bristol income, and the dividends received from Bristol Company.

Jan. 2 Purchase

Dec. 31 - Income

Dec. 31 - Dividends