On March 1, 2018, as a trading investment, Mahdi acquired 12% of the 250,000 issued common shares of Noah Limited at $8 per share. On July 1, 2018, Noah declared and paid a cash dividend of $2 per share. On December 31, 2018, Noah's reported net income was $654,000 for the year and its shares were trading at $7.50.InstructionsPrepare all necessary journal entries relating to these two investments for 2018 for Mahdi Corporation.

Question

Quizplus · Accepted Answer

The Answer of On March 1, 2018, as a trading investment, Mahdi acquired 12% of the 250,000 issued common shares of Noah Limited at $8 per share. On July 1, 2018, Noah declared and paid a cash dividend of $2 per share. On December 31, 2018, Noah's reported net income was $654,000 for the year and its shares were trading at $7.50.InstructionsPrepare all necessary journal entries relating to these two investments for 2018 for Mahdi Corporation.

On March 1, 2018, as a Trading Investment, Mahdi Acquired