Question1 On January 1, Zabel Corporation purchased a 25% equity in Helbert Corp

Question

Question1 On January 1, Zabel Corporation purchased a 25% equity in Helbert Corporation for $185,500. At December 31, Helbert declared and paid a $41,600 cash dividend and reported net income of $235,500. Journalize 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 O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record dividends received) (To record equity in Helbert Corporation's net income) SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE Determine the amount to be reported as an investment in Helbert stock at December 31. Investment in Helbert, December 31 SHOW LIST OF ACCOUNTS LINK TO TEXT VIDEO: SIMILAR EXERCISE Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

1-Jan Stock Investments 185000         Cash 185000 31-Dec Cash 10400 =41600*25%        Stock Investments 10400 31-Dec Stock Investments 58875 =235500*25%         Revenue from stock investments 58875 2 Investment in Helbert, Dec 31=185000+58875-10400= $233475

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