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On January 2, Dundar Mifflin acquired 30% of the outstanding stock of Steve & Company for $105,000.

On January 2, Dundar Mifflin acquired 30% of the outstanding stock of Steve & Company for $105,000. For the year ending, December 31, Steve & Company earned income of $68,000 and paid dividend $16,000. Prepare the entries for Dundar Mifflin for the purchase of the stock, share of Steve & Company income and dividends received from Steve & Company.

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Whenever a company acquires 20% or more and less than 50% in particular company then acquiring company has significant... View the full answer

Journal entry for investment.png

Journal entry for the purchase of stock:
SI No.
Accounts Title and Explanation
Debit
Credit
Investment in Steve & Company
1050 0 0
Cash
105 0 0 0
Journal entry for share of Steve & Company...

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