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Drewana, Inc. obtained significant influence over Sterling Corporation by buying 25% of Sterling 50,000 outstanding...

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Accounting

Drewana, Inc. obtained significant influence over Sterling Corporation by buying 25% of Sterling 50,000 outstanding shares of common stock at a total cost of $7 per share on January 1, 2019. On June 16 Sterling declared and paid a cash dividend of $40,000. On December 31, Sterling reported net income of $90,000 for the year.

Instructions

Prepare all the necessary journal entries for 2019 for Drewana, Inc.

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