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I just posted this question and someone says I need more information but this is all that's given, please help! On January 1, year 3,

I just posted this question and someone says I need more information but this is all that's given, please help!

On January 1, year 3, Belmont enterprises obtained 10,000 (15%) of the shares of Candy Inc. for $280,000. During year 3 Candy reported net income of $145,000 and paid dividends of $40,000. The market price of Candys shares was $30 at the end of year 3.

Belmont was pleased with the investment in Candy and obtained another 20% of the shares of Candy Inc. on January 1, year 4 for $400,000. This new investment gives Belmont significant influence over Candy. Candy reported net income of $180,000 in year 4 and paid dividends of $50,000. The market price of Candys shares at the end of year 4 was $31. Belmont sold the investment in Candys shares on January 2, year 5 for $31 each.

Required:

  1. Prepare all journal entries required for years 3, 4 and 5.
  2. Provide the balance of the investment account at the end of year 3 and 4.

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