On January 2, Olson Company acquired 35% of the outstanding stock of Bryant Company for $140,000. for the year ending December 31, Bryant Company earned income of $44,000 and paid dividends of $20,000. Prepare the entries for Olson Company for the purchase of the stock, share of Bryant income, and dividends received from Bryant Company.
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Jan. 2 |
Investment in Bryant Company Stock |
140,000 |
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Cash |
140,000 |
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Dec. 31 |
Investment in Bryant Company Stock |
15,400 |
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Income of Bryant Company |
15,400 |
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Record 35% of Bryant income, 35% x $44,000. |
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Dec. 31 |
Cash |
7,000* |
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Investment in Bryant Company Stock |
7,000 |
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*35% x $20,000 |