Required information [The following information applies to the questions displayed below. On July 12, 2018, Rossow Corporation purchased 1,300 shares of Reimer Company for $52,000. The following information applies to the fair value of Reimer Company: Per Share $44 43 35 12/31/2018 12/31/2019 12/31/2020 Reimer Company declares and pays cash dividends of $3 per share on May 1 of each year. 2. Prepare journal entries to record the facts in the case, assuming Rossow owns 38 percent of Reimer's stock. Reimer reported $39,000 of net income each year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 4 7 8 Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $39,000 in 2018. Note: Enter debits before credits. Credit Date General Journal Debit December 31, 2018 Record entry View general journal Clear entry Journal entry worksheet 3 4 5 7 8 Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2018 is $44 per share. Note: Enter debits before credits Debit Credit Date General Journal December 31, 2018 Record entry Clear entry View general journal Journal entry worksheet 2 4 8 Record the receipt of cash dividends on May 1, 2019 of $3 per share. Note: Enter debits before credits. Date Debit Credit General Journal May 01, 2019 Record entry Clear entry View general journal Journal entry worksheet 4 7 Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $39,000 in 2019. Note: Enter debits before credits. Date Credit General Journal Debit December 31, 2019 Record entry Clear entry View general journal Journal entry worksheet 4 6 7 Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2019 is $43 per share. Note: Enter debits before credits. Debit Credit Date General Journal December 31, 2019 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 7 Record the receipt of cash dividends on May 1, 2020 of $3 per share. Note: Enter debits before credits. Credit Date General Journal Debit May 01, 2020 Clear entry View general journal Record entry Journal entry worksheet 2 4 8 Record the entry to recognize earnings from Rossow's investment in Reimer. Reimer reported net income of $39,000 in 2020. Note: Enter debits before credits. Debit Date General Journal Credit December 31, 2020 View general journal Record entry Clear entry Journal entry worksheet 7 4 9 Record the valuation adjustment, if required, assuming the fair value of Reimer Company's stock on December 31, 2020 is $35 per share. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2020 Record entry Clear entry View general journal
