Question
janus Corp. acquired a 30% interest in west Co. on December 31, 2020, for $500,000. On September 15, 2021, west declared and paid $220,000 in
janus Corp. acquired a 30% interest in west Co. on December 31, 2020, for $500,000. On September 15, 2021, west declared and paid $220,000 in cash dividends. west reported net income for the year ended December 31, 2021, of $480,000.
Prepare the journal entries for 2021 that janus would make to account for its investment in west Corp.
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In the present case investment is 30 which is between 25 and 50 So Equity Method is used Journa...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
