Homework Answers
Ally, Inc has invested in Blake Company.
| 1 | At the time of Investmet below entry will be passed | ||
| Particulars | Amount | ||
| Investment a/c | Dr. | $400000 | |
| To Bank/Cash a/c | Cr. | $400000 | |
| 2 | For Material Purchase below entyr will be passed | ||
| Purchase a/c | Dr. | $30000 | |
| To Bank/Cash a/c | Cr. | $30000 | |
| 3 | At year end 2020 following entry will be passed | ||
| Investment a/c | Dr. | $24000 | |
| To Income a/c | Cr. | $24000 | |
| 4 | At year end 2020 for dividend following entry will be passed | ||
| Cash/Bank a/c | Dr. | $10000 | |
| To Investment a/c | Cr. | $10000 | |
| 5 | At year end 2021 following entry will be passed | ||
| Investment a/c | Dr. | $32000 | |
| To Income a/c | Cr. | $32000 | |
| 6 | At year end 2021 for dividend following entry will be passed | ||
| Cash/Bank a/c | Dr. | $10000 | |
| To Investment a/c | Cr. | $10000 | |
| Above all entry will be passed in Ally, Inc books of a/c. |
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