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Business and Finance Questions

On January 5, Jones Ventures Inc. purchased 4096 of the outstanding stock of Pilots Manufacturing Corp. The purchase was 20,000 shares at $10 per share Jones received dividends from Pilots in the amount of $15,000 on June 15 and again on December 151 Pilots reported net income for the year ended December 31 in the amount of $200,000. What is the journal entry, if any, that Jones needs to make dated December 31?

Question 4 options:

Debit investment in Pilots, $80,000; credit income from Pilots Corps, $80,000

No entry on December 31 because the dividends were paid on different date

Debit investment in Pilots, $65,000; credit income from Pilots, $65,000.

Debit investment in Pilots, $110,000; credit income from Pilots Corp., $80,000; credit dividends income, $30,000.

Last Updated on February 11, 2019

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