G On January 2, Yorkshire Company acquired 34% of the outstanding stock of Fain Company for $400,000. For the year ended December 31, Fain Company earned income of $104,000 and paid dividends of $32,000. Prepare the entries for Yorkshire Company for the purchase of the stock, the share of Fain income, and the dividends received from Fain Company.

See the explanation below:

Explanation:

Share of profit of Fain Company = $104,000 * 34% = $35,350

Dividend received = $32,000 * 34% = $10,880

Date             Details                                                 Dr ($)              Cr ($)  

Jan. 2           Investment in Fain Company           400,000

                    Cash                                                                         400,000

                    To record payment for investment in Fain Company          

Dec. 31         Investment in Fain Company             35,350

                    Share of profit of Fain Co.                                        35,000

                    To record share of profit in Fain Company                          

Dec. 31         Cash                                                     10,880

                    Investment in Fain Company                                    10,880

                    To record received from investment in Fain Company      

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know