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Sandhill Company acquired 27% of the outstanding common stock of Grinwold Inc. on January 1,...

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Accounting

Sandhill Company acquired 27% of the outstanding common stock of Grinwold Inc. on January 1, 2022, by paying $1,611,900 for 59,700 shares. Grinwold declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2022. Grinwold reported net income of $860,000 for the year. (a) Prepare the journal entries for Sandhill Company for 2022, assuming Sandhill cannot exercise significant influence over Grinwold. (Use the cost method.) (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Prepare the journal entries for Sandhill Company for 2022, assuming Sandhill cannot exercise significant influence over Grinwold. (Use the cost method.) (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit

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