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Required information [The following information applies to the questions displayed below) The following Information pertains to Rossow Corporation and its investee Reimer Company a. Rossow

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Required information [The following information applies to the questions displayed below) The following Information pertains to Rossow Corporation and its investee Reimer Company a. Rossow purchased 2,500 shares of Relmer on July 12, 2021, for $45,000; b. Reimer reported $27,000 net income on December 31, 2021 c. Reimer's stock price was $24 on December 31, 2021 d. Reimer declared and paid a $4 per share cash dividend on May 1, 2022 e. Reimer reported $27000 net income on December 31, 2022, and f. Reimer's stock price was $20 on December 31, 2022 2. Prepare journal entries to record the facts in the case, assuming Rossow owns 23 percent of Reimer's stock. Reimer reported $27,000 of net income each year. If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the purchase of 2,500 shares (23%) of Reimer Company for $45,000. The company will record the investment under the equity method of accounting, Note: Enter debits before credits. General Journal Date July 12, 2021 Debit Credit Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $27,000 in 2021. Note: Enter debits before credits. General Journal Dobit Credit Date December 31, 2021 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the receipt of cash dividends on May 1, 2022 of $4 per share. Note: Enter debits before credits Date General Journal Debit Credit May 01, 2022 Record entry Clear entry View general Journal View transaction list Journal entry worksheet B C D E F > Record the entry to recognize earnings from Rossow's investment in Reimer Reimer reported net income of $27,000 in 2022. Note: Enter debits before credits Date General Journal Debit Credit December 31, 2022 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2022 is $20 per share. Note: Enter debits before credits. Date December 31, 2022 General Journal Debit Credit Record entry Clear entry View general Journal

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