Recording equity method securities transactions


On January 2, 2010, Ubuy.com paid $100,000 to acquire 25 percent (10,000 shares) of the com- mon stock of E-Net Corporation. The accounting period for both companies ends December 31. Give the journal entries for the purchase on January 2, and for each of the following transactions that occurred during 2010. July 2 E-Net declared and paid a cash dividend of $3 per share. Dec. 31 E-Net reported net income of $200,000. Recording Equity Method Securities Transactions

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Accounting Basics: Recording equity method securities transactions
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