Exercise 2: Accounting for the Income of a Subsidiary
Meat Wad Inc., 100% owned by Frylock Inc., reports the following income and dividend results for 2017:
	Net Income; 1st Quarter (3/31)			$150,000		Net Income; 3rd Quarter (9/30)			$45,000
	Dividend Declared (6/15/17)			$10,000		Dividend Declared (12/15/17)			$15,000
	Net Income; 2nd Quarter (6/30)			$75,000		Net Income; 4th Quarter (12/31)			$50,000
A) Record the 2017 journal entries made by Frylock to account for the income / dividends of Meat Wad using the Cost Method of accounting for the income of a subsidiary by entering the required amounts in the gray shaded cells. When correct, the cells will change color:
Date	Account				Debit			Credit
6/15/17	Dividends Receivable
		Investment Income
12/15/17	Dividends Receivable
		Investment Income
B) Record the 2012 journal entries made by Frylock to account for the income / dividends of Meat Wad using the Equity Method of accounting for the income of a subsidiary by entering the required amounts in the gray shaded cells. When correct, the cells will change color:
Date	Account				Debit			Credit
3/31/17	Investment in Meat Wad
		Investment Income
6/15/17	Dividends Receivable
		Investment in Meat Wad
6/30/17	Investment in Meat Wad
		Investment Income
9/30/17	Investment in Meat Wad
		Investment Income
12/15/17	Dividends Receivable
		Investment in Meat Wad
12/31/17	Investment in Meat Wad
		Investment Income