Question
XYZ purchased $100,000equity interest in Z-Tech,Inc, on January 1,2020.On November 30.2020,Z-Tech paid dividends of $3,000to XYZ.At December 31,2020,XYZ's holdings in Z-Tech is valued at $101,000.
XYZ purchased $100,000equity interest in Z-Tech,Inc, on January 1,2020.On November 30.2020,Z-Tech paid dividends of $3,000to XYZ.At December 31,2020,XYZ's holdings in Z-Tech is valued at $101,000. Prepare the entries necessary to record (1) the purchase of the investment, (2) the receipt of dividends and (3) year-end adjusting entry assuming that XYZ uses the Available for Sale method to account for this investment.
Note: Space is limited. Please do not skip lines between entries.
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Financial Accounting
Authors: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
17th edition
978-1259692390
