On February 5, McCracken Co. purchases 25 percent of Bradley Company common stock at a total cost of $90,000. Complete the necessary adjusting entry.

February 5

Dr. Investment in Equity Shares $90,000

Cr. Cash                                       $90,000

Explanation:

25% Share purchased of a company is an investment in that company which will have some return in the form of dividend and Price appreciation as well. Investment is an asset for the company, so increase in asset requires a debit entry due to the debit nature of asset accounts. and cash is paid which is also an asset and decrease in it will be recorded as the credit entry in it.

answer; /// i do believe the correct answer is (30,000);