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Pawn Corporation purchased 30 percent of Shop Company's common stock on January 1,205, by issuing preferred stock with a par value of $50,000 and a market price of $120,000. The following amounts relate to Shop's balance sheet items at that date: Shop purchased buildings and equipment on January 1,20x0, with an expected economic life of 20 years. No change in overall expected economic life occurred as a result of the acquisition of Pawn's stock. The amount paid in excess of the fair value of Shop's reported net assets is attributed to unrecorded copyrights with a remaining useful life of eight years. During 20X5, Shop reported net income of $40,000 and paid dividends of $10,000 Required: Prepare all journal entries to be recorded on Pown Corporation's books during 205, assuming it uses the equity method in accounting for its ownership of Shop Company. Note: If no entrv is reauired for a transaction/event. select "No iournal entru reauired" in the first account field. Journal entry worksheet Record the initial investment in Shop Corporation. Note: Enter debits before credits. Journal entry worksheet Record Pawn Corporation's 30\% share of Shop Corporation's 205 income. Note: Enter debits before credits. Journal entry worksheet Record Pawn Corporation's 30\% share of Shop Corporation's 205 dividend. Note: Enter debits before credits. Journal entry worksheet Record the amortization of the excess acquisition price. Note: Enter debits before credits. Pawn Corporation purchased 30 percent of Shop Company's common stock on January 1,205, by issuing preferred stock with a par value of $50,000 and a market price of $120,000. The following amounts relate to Shop's balance sheet items at that date: Shop purchased buildings and equipment on January 1,20x0, with an expected economic life of 20 years. No change in overall expected economic life occurred as a result of the acquisition of Pawn's stock. The amount paid in excess of the fair value of Shop's reported net assets is attributed to unrecorded copyrights with a remaining useful life of eight years. During 20X5, Shop reported net income of $40,000 and paid dividends of $10,000 Required: Prepare all journal entries to be recorded on Pown Corporation's books during 205, assuming it uses the equity method in accounting for its ownership of Shop Company. Note: If no entrv is reauired for a transaction/event. select "No iournal entru reauired" in the first account field. Journal entry worksheet Record the initial investment in Shop Corporation. Note: Enter debits before credits. Journal entry worksheet Record Pawn Corporation's 30\% share of Shop Corporation's 205 income. Note: Enter debits before credits. Journal entry worksheet Record Pawn Corporation's 30\% share of Shop Corporation's 205 dividend. Note: Enter debits before credits. Journal entry worksheet Record the amortization of the excess acquisition price. Note: Enter debits before credits

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