On January 1,Chapin Corporation Purchased,as Long-Term Investments,10 Percent of the Voting

question 144

Essay

On January 1,Chapin Corporation purchased,as long-term investments,10 percent of the voting stock of Paxton Corporation for $75,000 and 25 percent of the voting stock of Colb Corporation for $150,000.During the year,Paxton Corporation had earnings of $40,000 and paid dividends of $15,000 on October 15,and Colb Corporation had earnings of $20,000 and paid dividends of $12,000 on November 10.The market value of neither investment declined nor rose during the year.Prepare journal entries without explanations to record this information as appropriate in Chapin Corporation's general journal.

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Definitions:

Dorsal Root Ganglion

A cluster of sensory neurons located in the dorsal root of a spinal nerve, transmitting sensory information to the spinal cord.

Ventral Root

A bundle of motor neuron fibers emerging from the anterior aspect of the spinal cord and conveying impulses from the central nervous system to the muscles.

Spinal Nerve

One of the 31 pairs of nerves that originate from the spinal cord, providing motor and sensory functions to the body.

Dorsal Root

The sensory branch of a spinal nerve that enters the spinal cord, carrying sensory information from the peripheral nervous system to the central nervous system.