On January 1, 2024, Rusty, Inc. decides to invest in 8,400 shares of Dressage stock when...
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On January 1, 2024, Rusty, Inc. decides to invest in 8,400 shares of Dressage stock when the stock is selling for $11 per share. On July 1, 2024, Dressage paid a $0.30 per share cash dividend to stockholders. On December 31, 2024, Dressage reports net income of $100,000 for 2024. Assume Dressage has 28,000 shares of voting stock outstanding during 2024 and Rusty has significant influence over Dressage. Read the requirements. Requirement 1. Identify what type of investment the Dressage stock is for Rusty. Rusty's investment would be a significant influence investment. Requirement 2. Journalize the transactions related to Rusty's investment in the Dressage stock during 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) January 1: Rusty, Inc. decides to invest in 8,400 shares of Dressage stock when the stock is selling for $11 per share. Date Accounts and Explanation Jan. 1 Equity Investments-Dressage Cash Debit Credit On January 1, 2024, Rusty, Inc. decides to invest in 8,400 shares of Dressage stock when the stock is selling for $11 per share. On July 1, 2024, Dressage paid a $0.30 per share cash dividend to stockholders. On December 31, 2024, Dressage reports net income of $100,000 for 2024. Assume Dressage has 28,000 shares of voting stock outstanding during 2024 and Rusty has significant influence over Dressage. Read the requirements. Requirement 1. Identify what type of investment the Dressage stock is for Rusty. Rusty's investment would be a significant influence investment. Requirement 2. Journalize the transactions related to Rusty's investment in the Dressage stock during 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) January 1: Rusty, Inc. decides to invest in 8,400 shares of Dressage stock when the stock is selling for $11 per share. Date Accounts and Explanation Jan. 1 Equity Investments-Dressage Cash Debit Credit
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