useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below: Year 20x5 20x6 20x7 Net Income $39,000 59,000 39,000 Dividends $14,000 24,000 37,000 Required: Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming it accounts for the investment using the equity method. (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 Ship Company for 20Xs. Note: Enter debits before credits Event (1a) Debit Credit General Journal Investment in Ship Company Cash View transaction list Journal entry worksheet Record the dividend from Ship Company for 20x5. Note: Enter debits before credits. Event Debit Credit (15) General Journal Cash Investment in Ship Company Prev 1 of 7 !!! Next > View transaction list Journal entry worksheet Record the equity-method income for 20x5. Note: Enter debits before credits Event General Journal Debit Credit (10) Investment in Ship Company Income from Ship Company quired" in the first account field.) View transaction list Journal entry worksheet Record the amortization of differential value for 20x5. Note: Enter debits before credits. Debit Credit Event (10) General Journal Income from Ship Company Investment in Ship Company View transaction list Journal entry worksheet Record the dividend from Ship Company for 20x6. Note: Enter debits before credits. Event Debit Credit (2a) General Journal Dividend income Cash Prev 1 of 7 Next > Journal entry worksheet 9 10 > 3 5 Record the amortization of the differential value for 20x6. Note: Enter debits before credits. Debit Credit Event (2c) General Journal Income from Ship Company Investment in Ship Company Journal entry worksheet Record the dividend from Ship Company for 20x7. Note: Enter debits before credits. Debit Credit Event (3a) General Journal Cash Investment in Ship Company Journal entry worksheet Record the equity-method income for 20x7. Note: Enter debits before credits. General Journal Event (3b) Debit Credit Prev 1 of 7 Next > Journal entry worksheet Record the amortization of the differential value for 20x7. Note: Enter debits before credits. General Journal Event (30) Debit Credit Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20x5, for $279,000. On that date, the book value of Ship's reported net assets was $214,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 5 years. Net income and dividend payments of Ship in the following periods were as shown below: Year Net Income Dividends 20x5 $39,000 $14,000 20X6 59,000 24,000 39,000 37,000 20x7 Required: Prepare journal entries on Pirate Corporation's books relating to its investment in Ship Company for each of the three years, assuming it accounts for the investment using the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
