CoursHeroTranscribedText: Shebang Corporation had $180,000 of $10 par value common stock outstanding on January 1,...
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Accounting
CoursHeroTranscribedText: Shebang Corporation had $180,000 of $10 par value common stock outstanding on January 1, 2020, and retained earnings of $220,000 on the same date. During 2020 and 2021, Shebang earned net incomes of $190,000 and $130,000, respectively, and paid dividends of $18,000 and $20,000, respectively. On January 1, 2020, Peents Company purchased 20% of Shebang's outstanding common stock for $160,000. On January 1, 2021, Peents purchased an additional 20% of Shebang's outstanding stock for $130,200. Using Working Paper for 1. Present the analysis and calculation of net income and dividends of Shebang Corporation for Peents corporation in both years. 2. Prepare journal all entries for Peents Corporation relations for its investment in Shebang Corporation for 2020 and 2021. 3. Calculate the balance of Peent's Investment in Shebang Corporation at December 31, 2021
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