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Shamrock Corporation purchased for $322,000 a 30% interest in Murphy, Inc. This investment enables Shamrock...

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Accounting

Shamrock Corporation purchased for $322,000 a 30% interest in Murphy, Inc. This investment enables Shamrock to exert significant influence over Murphy. During the year, Murphy earned net income of $183,000 and paid dividends of $60,000. Prepare Shamrocks journal entries related to this investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

enter an account title to record the purchase

enter a debit amount

enter a credit amount

enter an account title to record the purchase

enter a debit amount

enter a credit amount

(To record the purchase.)

enter an account title to record the net income

enter a debit amount

enter a credit amount

enter an account title to record the net income

enter a debit amount

enter a credit amount

(To record the net income.)

enter an account title to record the dividend

enter a debit amount

enter a credit amount

enter an account title to record the dividend

enter a debit amount

enter a credit amount

(To record the dividend.)

Answer & Explanation Solved by verified expert
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