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On March 1, Year 1, Chase Inc. purchases 35% of the outstanding shares of Glory Corporation...

On March 1, Year 1, Chase Inc. purchases 35% of the outstanding shares of Glory Corporation stock for $325,000. On December 31, Year 1, Glory reports net income of $162,000. On January 15, Year 2, Glory pays total dividends to stockholders of $33,000. Required: Journalize the three transactions. Refer to the Chart of Accounts for exact wording of account titles.

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Answer #1
Date Accounts Debit Crefit
March 1 investment in glory corporation stock 325000
Cash 325000
(To record the investment in stock)
Dec 31 investment in glory corporation stock (162000*35%) 56700
Income from investment 56700
(To recognize the income on investment)
Jan 15 cash (33000*35%) 11550
Investment in glory corporation stock 11560
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