On January 2, 20Y7, Mikedes Company acquired 25% of the outstanding stock of Violet Company for $735,000. For the year ended December 31, 20Y7, Violet Company earned income of $133,400 and paid dividends of $20,600. On January 31, 20Y8, Mikedes Company sold all of its investment in Violet Company stock for $772,200.

Required:

Journalize the entries for Mikedes Company for the purchase of the stock, the share of Violet income, the dividends received from Violet Company. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

Journalize the entry for Mikedes Company for the sale of the Violet Company stock. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3