1. Prepare the journal entry for July 1 investment.

2. prepare necessary journal entries for 2017.

Problem #1: On July 1, 2017, HB Systems acquired 8,000 shares of Apple Services 40,000 outstanding common shares at a cost of $240,000. The book value of Apple's net assets on that date was $880,000. The following data pertain to Apple Services for 2017: Net income reported in 2017: January 1 - June 30 July 1 - December 31............ Total.... $28,000 36,000 $64,000 Cash dividends declared and paid in 2017: January 1 - June 30... $30,000 July 1 - December 31 45,000 Total $75,000 Any excess of cost over book value is attributable to depreciable equipment the market value of which exceeds the carrying value. The remaining life of the equipment is 10 years