5

On April 1, 2018, Garden Company invests $13,000 in Lilacs, Inc. stock. Lilacs pays Garden a $200 dividend on October 1, 2018. Garden sells the Lilacs's stock on October 31, 2018, for $13,100. Assume the investment is categorized as a short-term equity investment and Garden Company does not have significant influence over Lilacs, Inc. Read the requirements Requirement 1. Journalize the transactions for Garden's investment in Lilacs' stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Garden's initial investment in Lilacs, Inc., stock. Date Accounts and Explanation Debit Credit Apr. 1 On April 1, 2018, Garden Company invests $13,000 in Lilacs, Inc. stock. Lilacs pays Garden a $200 dividend on October 1, 2018 Garden sells the Lilacs's stock on October 31, 2018, for $13,100. Assume the investment is categorized as a short-term equity investment and Garden Company does not have significant influence over Lilacs, Inc Read the requirements. Next, journalize Garden's receipt of the October 1 dividend. Date Accounts and Explanation Debit Credit Oct. 1 On April 1, 2018, Garden Company invests $13,000 in Lilacs, Inc. stock. Lilacs pays Garden a $200 dividend on October 1, 2018 Garden sells the Lilacs's stock on October 31, 2018, for $13,100. Assume the investment is categorized as a short-term equity investment and Garden Company does not have significant influence over Lilacs, Inc Read the requirements. Now journalize Garden's sale of the Lilacs, Inc., stock on October 31. Date Accounts and Explanation Debit Credit Oct 31 Requirement 2. What was the net effect of the investment on Garden's net income for the year ended December 31, 2018? by $ Garden's net income for the year has L hor in the innuit fields and then continue to the next question Requirements w 1. Journalize the transactions for Garden's investment in Lilacs's stock. 2. What was the net effect of the investment on Garden's net income for the year ended December 31, 2018? Print Done