(Solution) - On January 1 2007 Jones acquires a 30 interest in -(2025 Original AI-Free Solution)

Paper Details

On January 1, 2007 Jones acquires a 30% interest in Fink Company by purchasing 3,000 of its 10,000 common shares for $16 per share and obtains significant influence. On the date of acquisition, the net assets of Fink Company were as shown here:

During 2007 Fink Company earned income of $22,000 and paid dividends of $6,000.

Required
Prepare all journal entries on Jones Company?s books to record the acquisition, dividends, and income from the investment in Fink Company. Show supportingcalculations.