On January 1, 2017, Casey Company acquires a 30% interest in Hill Company by purchasing 6,000 shares of its
20,000 common stock for $16 per share. On January 1, 2017, the net assets of Hill Company were as follows: During 2017, Hill reported net income of $200,000 and paid cash dividends of $80,000.
Required:
Prepare all journal entries on Casey's books to record the acquisition, dividends, and income from the investment in
Hill Company.

Question

On January 1, 2017, Casey Company acquires a 30% interest in Hill Company by purchasing 6,000 shares of its
20,000 common stock for $16 per share. On January 1, 2017, the net assets of Hill Company were as follows:  During 2017, Hill reported net income of $200,000 and paid cash dividends of $80,000.
Required:
Prepare all journal entries on Casey's books to record the acquisition, dividends, and income from the investment in
Hill Company.

Quizplus · Accepted Answer

The Answer of On January 1, 2017, Casey Company acquires a 30% interest in Hill Company by purchasing 6,000 shares of its
20,000 common stock for $16 per share. On January 1, 2017, the net assets of Hill Company were as follows:  During 2017, Hill reported net income of $200,000 and paid cash dividends of $80,000.
Required:
Prepare all journal entries on Casey's books to record the acquisition, dividends, and income from the investment in
Hill Company.

On January 1, 2017, Casey Company Acquires a 30% Interest