Question - Need the journal entries and end balance sheet information for the company.
On January 1, 2016, Bravo - Zulu Company purchased 10,000 shares of the stock of Rayco, and did obtain significant influence. The investment is intended as a long-term investment The stock was purchased for $90,000, and represents a 30% ownership stake. Rayco made $25,000 of net income In 2016, and paid dividends of $10,000.
Requirements:
a. Prepare the January 1 and December 31 general journal entries for Bravo - Zulu Company.
b. How much should the Bravo Zulu Company report on the balance sheet for the investment in Rayco at the end of 2016?