On January 1, 2014, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000. During the year, Edwards earned net inc
On January 1, 2014, Pennington Corporation purchased 30% of the common shares of Edwards Company for $180,000. During the year, Edwards earned net income of $80,000 and paid dividends of $20,000.
\r\nInstructions
\r\nPrepare the entries for Pennington to record the purchase and any additional entries related to this investment in Edwards Company in 2014.