Athens Company completed these long-term equity investment transactions during 2018: 2018 Apr 10 ............ Purchased 400 shares

Question:

Athens Company completed these long-term equity investment transactions during 2018:

2018
Apr 10 ............ Purchased 400 shares of Technomite stock (less than 10% of Technomite’s outstanding stock), paying $18 per share. Athens Company intends to hold the investment indefinitely.

Jul 22 .............. Received a cash dividend of $1.21 per share on the Technomite stock.
Dec 31 ............ Adjusted the Technomite investment to its current market value of $4,900.

1. Journalize Athens Company’s investment transactions. Explanations are not required.

2. Assume the Technomite stock is Athens Company’s only investment. Explain how these transactions will be reflected on Athens Company’s income statement for the year ended December 31, 2018.

3. Show how to report the investment on Athens Company’s balance sheet at December 31, 2018. Ignore income taxes.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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