Question
On January 1, 2016, Tiger Company purchased 6,720 shares of Eagle Corporations common stock when Eagle had 22,400 shares outstanding. On that date, the following
On January 1, 2016, Tiger Company purchased 6,720 shares of Eagle Corporations common stock when Eagle had 22,400 shares outstanding. On that date, the following information pertained to Eagle:
| Eagle Corporation |
| Balance Sheet |
| January 1, 2016 |
| 1 | Book Value | Fair Value | |
| 2 | Depreciable assets (remaining life, 8 years) | $600,000.00 | $620,000.00 |
| 3 | Other non-depreciable assets | 290,000.00 | 300,000.00 |
| 4 | Total | $890,000.00 | $920,000.00 |
| 5 | Liabilities | $300,000.00 | $330,000.00 |
| 6 | Shareholders equity | 590,000.00 | |
| 7 | Total | $890,000.00 |
During 2016, Eagle earned net income of $120,000 and paid total dividends of $48,000.
Required:
| Prepare the journal entries of Tiger related to its share of Eagles net income and dividends in 2016. |
6 Entries
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
| 1 |
| ||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| 6 |
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