The beginning balance sheet of Text Source Co. included a $700,000 investment in Taylor stock (20% ownership).
During the year, Text Source completed the following investment transactions:

Requirements 

1. Journalize the transactions for the year of Text Source.
2. Post transactions to T-accounts to determine the December 31, 2024, balances related to the investment and investment income accounts.
3. Prepare Text Source’s partial balance sheet at December 31, 2024, from your answers in Requirement 2.
4. Where is the unrealized holding gain or loss associated with the Josh stock reported?

Transcribed Image Text:

Mar. 3 May 15 Dec. 15 31 31 31 31 Purchased 5,000 shares at $13 per share of Josh Software common stock as a long-term equity investment, representing 3% ownership, no significant influence. Received a cash dividend of $0.69 per share on the Josh investment. Received a cash dividend of $100,000 from Taylor investment. Received Taylor's annual report showing $100,000 of net income. Received Josh's annual report showing $620,000 of net income for the year. Taylor's stock fair value at year-end was $620,000. Josh's common stock fair value at year-end was $14 per share.