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Novak Edward Inc. acquired 20% of the outstanding common stock of Theresa Sunland Inc- on December 31, 2025. The purchase price was $1.097,800 for 49.900
Novak Edward Inc. acquired 20% of the outstanding common stock of Theresa Sunland Inc- on December 31, 2025. The purchase price was $1.097,800 for 49.900 thares. Sunland inc declared and paid an $0.85 per share cash dividend on June 30 and on December 31,2026 .5unland reported net income of $769,000 for 2026 . The fair value of 5 unland's stock was $25 per share at December 31. 2026. Assume that the security is a trading security. (a) Prepare the journal entries for Novak Edward Inc. for 2025 and 2026, assuming that Edward cannot exercise significant influence over Sunland. (List all debit entries before credit entries. Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter of for the amounts. Record journol entries in the. order presented in the problen.. Prepare the journal entries for Novak Edward inc. for 2025 and 2026 , assuming that Edward can exercise significant influence over Sunlant, (List all debit entries before credit entries. Credit occount tieles ore outomatically indented when amount is entered, Do not indent manually. If no entry is required, select "Wo Entry" for the account tilles and enter 0 for the amounts. Record joumal entries in the order presented in the
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