Beginning and end ofy ear balance sheets for Jensen Corporation follow. Also shown is the income statement for 20X6. No investments were sold during the year, however, stock in Delta Corporation was acquired on August 15, 20X6. Dividends of $50,000 were received on each of the investments in Alpha and Beta.

Form a four-person team. Assign each team member to one of the investments - Alpha, Beta, Delta, or Gamma. Team members should examine the financial reports that follow and prepare an explanation of the activity and accounting for their specifically assigned investment. Then, the team should meet and each member present their explanation to the remainder of the group.

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Assets Current assets JENSEN CORPORATION Balance Sheet January 1, 20X6 Liabilities Current liabilities Accounts payable Utilities payable $ 56,000 18,690 $ 74,690 Cash Accounts receivable Trading security investment (Alpha) Long-term investments Equity method investment (Beta) Investment in Bonds (Gamma) $ 34,500 145,667 500,000 $ 680,167 $800,000 842,000 1,642,000 Long-term liabilities Loan payable Total liabilities Property, plant & equipment Equipment (net) Total assets 660,500 $ 735,190 Stockholders' equity Capital stock $2,601,585 1,455,008 Retained earnings 440,400 3,041,985 $3,777,175 Total liabilities and equity $3,777,175