On January 1, 2018, Cardi Company purchased 20,000 shares

Arundel Company uses aging to estimate uncollectibles. 
May 5, 2020
McCartney Corporation had the following bond transactions during the fiscal year 2018:
May 5, 2020

On January 1, 2018, Cardi Company purchased 20,000 shares of the stock

of Perry Co, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $100,000, and represents a 40% ownership stake. Perry made $50,000 of net income in 2018, and paid dividends of $20,000. The price of Perry’s stock increased from $5 per share at the beginning of the year, to $6 per share at the end of the year.
Requirements:

-Prepare the January 1 and December 31 general journal entries for Carter Company.
-How much should the Carter Company report on the balance sheet for the investment in Perry at the end of 2018?

 
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