Berenstein Corporation Used the Equity Method to Report the Following $30 \%$

question 54

Essay

Berenstein Corporation used the equity method to report the following transactions for the years 2017 and 2018:
2017
Feb. 2 Purchased $30 \%$ of the voting common shares of Salon Enterprises Inc. for $\$ 400,000$ . This is a long-term investment giving Berenstein Corporation significant influence over the operations of Salon Enterprises Inc.
$\text { Oct. } 15 \text { Received } \$ 5,000 \text { cash dividends on Salon Enterprises Inc. common shares. }$
Dec. 31 Salon Enterprises Inc. reported total income of $\$ 250,000$ for the year ended December 31, 2017. 2018
Jun. 30 Salon Enterprises Inc. reported total income of $\$ 130,000$ for the six months ended Tune 30, 2018 $30 \text { Sold one-half of the Salon Enterprises Inc. shares for } \$ 240,000 \text {. }$
Prepare journal entries to record the above transactions.

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Definitions:

Broad Goals

General objectives that guide an organization or individual's actions without specifying detailed steps or strategies.

Broader Society

Pertains to the larger social system outside of smaller groups or communities, including cultural, economic, and structural dimensions.

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Organizational climate represents shared perceptions of members regarding what the organization is like in terms of management policies and practices.

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business.