DeRozen Company purchases 1,000 common shares (40%) of Tours of Toronto Incorporated as a long-term investment for $100,000 cash on July 1. Tours of Toronto paid $15,000 in total cash dividends on November 1 and reported net income of $150,000 for the year ended December 31. Prepare DeRozen's journal entry to record the purchase of common shares of Tours of Toronto. Multiple Choice О Debit Stock Investments $100,000; credit Cash $100,000. О Debit Equity Method Investments $15,000; credit Cash $15,000. О Debit Cash $100,000; credit Equity Method Investments $100,000. Debit Equity Method Investments $100,000; credit Cash $100,000. О Debit Stock Investments $15,000; credit Equity Method Investments $15,000.

DeRozen Company purchases 1,000 common shares (40%) of Tours of Toronto Incorporated as a long-term investment for $100,000 cash on July 1. Tours of Toronto paid $15,000 in total cash dividends on November 1 and reported net income of $150,000 for the year ended December 31. Prepare DeRozen's journal entry to record the purchase of common shares of Tours of Toronto. Multiple Choice О Debit Stock Investments $100,000; credit Cash $100,000. О Debit Equity Method Investments $15,000; credit Cash $15,000. О Debit Cash $100,000; credit Equity Method Investments $100,000. Debit Equity Method Investments $100,000; credit Cash $100,000. О Debit Stock Investments $15,000; credit Equity Method Investments $15,000.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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