MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT

MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 16-7 On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $182,500. At December 31, Helbert declared and paid a $54,600 cash dividend and reported net income of $209,000. ournalize the transactions. (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 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record dividends recelved) (To record equity in Helbert Corporation\'s net income)

Solution

Equity method will be used since Zabel Corporation exerts significant influence Date Account titles and Explanations Debit Credit 1-Jan Investment in Helbert Corporation 182,500 cash 182,500 31-Dec Cash 13650 investment in Helbert Corporation 13,650 (54600*25%) 31-Dec Investment in Helbert corporation 52250 Investment income/Revenue 52,250 (209,000*25%) investment in Helbert,dec 31 221,100 answer (182500-13650+52250)