Question

Noler Company owns 30% of Lauer Company. For the current year, Lauer reports net income of $205,000 and declares and pays a $41,000 cash dividend.

Record Noler’s equity in Lauer’s net income and the receipt of dividends from Lauer. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Credit Date Debit Dec. 31 (To record equity in Plano's net income) Dec. 31 (To record dividends received)

Answer 1

Date	Accounts Titles and Explanation	Debit	Credit
Dec 31	Stock Investments	$61,500		($205,000 x 30%)
	Revenue from Investment in Lauer Company		$61,500
	(To record equity in net income)
Dec 31	Cash	$12,300		($41,000 x 30%)
	Stock Investments		$12,300
	(To record dividends received)