On March 1, 2020 Current Properties paid $1,000,000 for 40 percent of the shares of Sealy Enterprises. Current exerts significant influence over Sealy.

a. Sealy reported earnings of $500,000 during 2020 . Record this journal entry for Current.

Debit Credit

b. Sealy paid dividends of $60,000 during October 2020. Record this journal entry for Current.

Debit Credit

c. What amount would Current report on its balance sheet as investment in Sealy at 12/31/2020?

(Hint: Use a T-account to help you with this answer)

d. Sealy reported earnings of $540,000 during 2021. Record this journal entry for Current.

Debit Credit

e. Sealy paid dividends of $65,000 during October 2021. Record this journal entry for Current.

Debit Credit

f. On December 30, 2021 Current sells its entire investment in Sealy for $1,400,000. Record the journal entry (Hint: Use a T-account to help you with this answer).

Debit Credit