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Brief Exercise 12-3 Noler Company owns 30% of Lauer Company. For the current yea

ID: 2521107 • Letter: B

Question

Brief Exercise 12-3

Noler Company owns 30% of Lauer Company. For the current year, Lauer reports net income of $182,000 and declares and pays a $65,000 cash dividend.

Record Noler’s equity in Lauer’s net income and the receipt of dividends from Lauer. (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.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record equity in Plano's net income)

Dec. 31

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record equity in Plano's net income)

Dec. 31

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Dec 31 Investment in Lauer company 54600 Income from Lauer company 54600 (To record equity in Plano's net income) Dec 31 Cash 19500   Investment in Lauer company 19500 (To record dividend)
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