ACCT 221 - Homework 2 Quiz. Questions and Answers.

ACCT 221 - Homework 2 Quiz. Questions and Answers. Quiz Submissions - Homework #2 Question 1 12 / 14 points On January 1, 2017, Alpha Company purchased a significant influence shares investment in the Bravo- Zulu Company for $250,000. This investment balance represents 25% of the equity of the Bravo-Zulu Company. During 2017, Bravo-Zulu Company reported Net Income of $25,000 on November 15, 2017 Bravo-Zulu Company paid cash dividends of $10,000 to its shareholders. Use this information to prepare the January 1, November 15 and December 31, 2017 General Journal entry (without explanation.) If no entry is required, then write "No Entry Required." General Journal: Date Accounts Debit Credit 1/1/17 Investment 250,000 Cash 250,000 11/15/17 Cash ($10,000 x 25%) 2,500 Investment 2,500 12/31/17 Long-term Investment ($25,000 x 25%) 6,25 0 6,250 The correct answer is not displayed for Written Response type questions. Correct answers below Answer: General Journal: Date Accounts Debit Credit 1/1/17 Investment in Bravo-Zulu 250,000