On August 4, 2019, Bennett Corporation purchased 4,500 shares of Plummer Company for $238,500. The...
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On August 4, 2019, Bennett Corporation purchased 4,500 shares of Plummer Company for $238,500. The following information applies to the stock price of Plummer Company: Price $ 52 12/31/2019 12/31/2020 12/31/2021 57 61 Plummer Company declares cash dividends of $3.50 per share on June 1 of each year and pays the dividends on July 1 of each year. 2. Prepare journal entries to record the facts in the case, assuming that Bennett used the equity method to account for the investment. Bennett owns 35 percent of Plummer and Plummer reported $55,000 in income each year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
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