Exercise 17-17
On January 1, 2017, Bonita Corporation purchased 20% of the common shares of Windsor Company for $206,000. During the year, Windsor earned net income of $94,000 and paid
dividends of $23,500.
Prepare the entries for Bonita to record the purchase and any additional entries related to this investment in Windsor Company in 2017. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(To record purchase of stock.)
(To record receipt of dividends)
(To record revenue)