!Required information[The following information applies to the questions displayed below.]The following information pertains to Rossow Corporation and its investee Reimer Company:a. Rossow purchased 1,900 shares of Reimer on July 12, 2021, for $72,200;b. Reimer reported $45,000 net income on December 31, 2021;c. Reimer's stock price was $44 on December 31, 2021;d. Reimer declared and paid a $3 per share cash dividend on May 1, 2022;e. Reimer reported $45,000 net income on December 31, 2022; andf. Reimer's stock price was $39 on December 31, 2022.2. Prepare journal entries to record the facts in the case, assuming Rossow owns 43 percent of Reimer's stock. Reimer reported$45,000 of net income each year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the firstaccount field.)View transaction listJournal entry worksheetA B CRecord the purchase of 1,900 shares (43%) of Reimer Company for $72,200.The company will record the investment under the equity method ofaccounting.Note: Enter debits before credits.DateJuly 12, 2021D E FRecord entryGeneral JournalClear entryDebitCreditView general journal

Equity method of accounting investment is used when the ownership is more than 20% .Equity Method of…

Answered: Rossow purchased 1,900 shares of Reimer…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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