Question

On January 1, 2015, BeWell Company purchased 10% of common stock of DoingWell Co for $450,000...

On January 1, 2015, BeWell Company purchased 10% of common stock of DoingWell Co for $450,000 and classified it as Available for Sale securities. BeWell does not have significant influence on Doingwell Company. DoingWell reported net income of $27,000 for the year and paid dividends of $9,000. On Dec 31, 2015 the Fair Value of this investment was $420,000

Required:

Prepare the appropriate journal entries on Jan 1, 2015 and December 31, 2015 to record the above transactions including year end adjustment entry.

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