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TSLCorporation had $180,000 of $10 par value common stock outstanding on January 1, 2020, and...

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Accounting

TSLCorporation 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, TSL earned net incomes of $190,000 and $130,000, respectively, and paid dividends of $18,000 and $20,000, respectively.

On January 1, 2020, EX Company purchased 20% of TSL outstanding common stock for $160,000.

On January 1, 2021, EX purchased an additional 20% of TSL's outstanding stock for $130,200.

Using Working Paper for:

1. Present the analysis and calculation of net income and dividends of TSL Corporation for EX corporation in both years.

2. Prepare journal all entries for EX Corporation relations for its investment in TSL Corporation for 2020 and 2021.

3. Calculate the balance of EX Investment in TSL Corporation at December 31, 2021.

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