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42) On January 1 Jaraih Corporation purchased a 25% equity in Peaceman Corporation for $210,000. At December 31 Peaceman decl
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Answer #1

The journal entries and their workings should be:

Date Description Debit ($) Credit ($) Workings
Jan-01 Stock Investment in Peaceman Corp. 2,10,000 given
Cash 2,10,000
Dec-31 Stock Investment in Peaceman Corp.      50,000 200000*25%
Revenue from Investments       50,000 (for net income)
Dec-31 Cash      15,000 60000*25%
Stock Investment in Peaceman Corp.       15,000 (for dividends)

Please comment in case of any issue and I will be happy to rectify it.

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