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On January 1, 2020, Martinez Corporation purchased 20% of the common shares of Sandhill Company for $164.000. During the year, Sandhill earned net income of
On January 1, 2020, Martinez Corporation purchased 20% of the common shares of Sandhill Company for $164.000. During the year, Sandhill earned net income of $79,000 and paid dividends of $19,750. Prepare the entries for Martinez to record the purchase and any additional entries related to this investment in Sandhill Company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Investment Income 164000 Cash 164000 (To record purchase of stock.) Revenue from Investment 15800 15800 Equity Investments (To record receipt of dividends.) Cash 3950 Investment Income 3950 (To record revenue.)
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