answer in text form please (without image), Note: .Every entry should have narration please Wildhorse Company purchased 51,240 shares of common stock of the BlossomCorporation as an investment for $1,220,000. During the year, Blossom Corporationreported net income of $488,000 and paid dividends of $122,000. (a) Assuming thatthe 51,240 shares represent a 15% interest in Blossom Corporation:Assuming that the 51,240 shares represent a 25% interest in Blossom Corporation:1. Prepare the journal entry to record the investment in Blossom stock. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select"No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationAccount Titles and ExplanationDebit2. Prepare any entries that Wildhorse Company should make in accounting for its investment in Blossom stock during the year.(Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debitentries before credit entries. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts.)ICreditDebitCredit

The cost method, which is less than 20% investment in investee company, treats any dividends as…

Answered: Wildhorse Company purchased 51,240…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman shares were selling for $34.50 per share. Prepare Fairbanks' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. assume the shares were purchased to meet a non-trading regulatory requirement. Prepare Fairbanks' journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment.
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