Better Boat Company's Alyssa Winter is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the following securities transactions in 2019. (Click the icon to view the securities transactions.) Read the requirements Requirement 1. Journalize the transactions including any entries, if required, at December 31, 2019. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required." on the first line of the Accounts column and leave all other cells blank. When prorating any calculations based on the amount of time an investment was outstanding during the year, use full months. It is not necessary to prorate based on the number of days the investment was outstanding for.) Jul. 1: Purchased 5,000 shares in Amar Outdoor Adventure Company for $5 per share. Better Boat does not have significant influence over Amar. Date Accounts and Explanations Debit Credit Jul. 1 Jul. 7: Purchased 25% of the stock of Braun Backpacks consisting of 32,500 shares of stock (out of a total of 130,000 shares) for $9 per share. Better Boat does have significant influence over Braun. Date Accounts and Explanations Debit Credit Jul. 7 Jul. 1: Purchased 5,000 shares in Amar Outdoor Adventure Company for $5 per share. Better Boat does not have significant influence over Amar. Date Accounts and Explanations Debit Credit Jul. 1 Jul. 10: Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Date Accounts and Explanations Debit Credit Jul. 10 Sep. 30: Received dividends of $0.05 per share from Amar. Date Accounts and Explanations Debit Credit Sep. 30 Nov. 1: Received dividends of $0.60 per share from Braun. Date Accounts and Explanations Debit Credit Nov. 1 Dec. 31: Adjusted the Amar stock for a market value of $4.93 per share. Date Accounts and Explanations Debit Credit Dec. 31 Dec. 31: Received an interest payment of $3,500 from Crossing Canoes. Date Accounts and Explanations Debit Credit Dec. 31 Dec. 31: Braun Backpacks reported net income of $100,000 for the year. Date Accounts and Explanations Debit Credit Dec. 31 Requirement 2. Determine the effect on Better Boat Company's net income for the year for each of the three investments. (Enter a decrease with a minus sign or parentheses.) Review the journal entries prepared in Requirement 1. Net increase (decrease) in Better Boat's 2019 income Investment Amar Braun Crossing each of the thre hai men Adjusted investment to market value. Received cash dividend (equity method). rom Received cash interest. Recorded revenue earned from investment. next question. ecided to Jul. 7: Purchi Received cash in exchange for stock. Date Purchased investment in stock. Jul. 7 Purchased investment in bonds. r Boat ( No entry required. Available-for-Sale Debt Investments Click the Cash the req Dividend Revenue Equity Investments Fair Value Adjustment-Equity Investments Fair Value Adjustment-Trading Held-to-Maturity Debt Investments Interest Revenue Revenue from Investments Trading Debt Investments 31: Adj Unrealized Holding LossEquity Investments Unrealized Holding Loss-Trading ate Jul. 10: Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat inter ir is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the ties transactions.) More Info actions including any ent on the first line of the Acc prprate based on the nu n on the last line of the j mount of time an investr nar Outdoor Adventure C 7 Accounts and Explana 10. July 1 Purchased 5,000 shares in Amar Outdoor Adventure Company for $5 per share. Better Boat does not have significant influence over Amar. Purchased 25% of the stock of Braun Backpacks consisting of 32,500 shares of stock (out of a total of 130,000 shares) for $9 per share. Better Boat does have significant influence over Braun. Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Sep. 30 Received dividends of $0.05 per share from Amar. Nov. 1 Received dividends of $0.60 per share from Braun. Dec. 31 Received an interest payment of $3,500 from Crossing Canoes. 31 Braun Backpacks reported net income of $100,000 for the year. 31 Adjusted the Amar stock for a market value of $4.93 per share. f Braun Backpacks consi does have significant inf Accounts and Explanat Print Done iumber in the input fields and then continue to the next question. Better Boat Company's Alyssa Winter is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the following securities transactions in 2019. (Click the icon to view the securities transactions.) Read the requirements Requirement 1. Journalize the transactions including any entries, if required, at December 31, 2019. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required." on the first line of the Accounts column and leave all other cells blank. When prorating any calculations based on the amount of time an investment was outstanding during the year, use full months. It is not necessary to prorate based on the number of days the investment was outstanding for.) Jul. 1: Purchased 5,000 shares in Amar Outdoor Adventure Company for $5 per share. Better Boat does not have significant influence over Amar. Date Accounts and Explanations Debit Credit Jul. 1 Jul. 7: Purchased 25% of the stock of Braun Backpacks consisting of 32,500 shares of stock (out of a total of 130,000 shares) for $9 per share. Better Boat does have significant influence over Braun. Date Accounts and Explanations Debit Credit Jul. 7 Jul. 1: Purchased 5,000 shares in Amar Outdoor Adventure Company for $5 per share. Better Boat does not have significant influence over Amar. Date Accounts and Explanations Debit Credit Jul. 1 Jul. 10: Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Date Accounts and Explanations Debit Credit Jul. 10 Sep. 30: Received dividends of $0.05 per share from Amar. Date Accounts and Explanations Debit Credit Sep. 30 Nov. 1: Received dividends of $0.60 per share from Braun. Date Accounts and Explanations Debit Credit Nov. 1 Dec. 31: Adjusted the Amar stock for a market value of $4.93 per share. Date Accounts and Explanations Debit Credit Dec. 31 Dec. 31: Received an interest payment of $3,500 from Crossing Canoes. Date Accounts and Explanations Debit Credit Dec. 31 Dec. 31: Braun Backpacks reported net income of $100,000 for the year. Date Accounts and Explanations Debit Credit Dec. 31 Requirement 2. Determine the effect on Better Boat Company's net income for the year for each of the three investments. (Enter a decrease with a minus sign or parentheses.) Review the journal entries prepared in Requirement 1. Net increase (decrease) in Better Boat's 2019 income Investment Amar Braun Crossing each of the thre hai men Adjusted investment to market value. Received cash dividend (equity method). rom Received cash interest. Recorded revenue earned from investment. next question. ecided to Jul. 7: Purchi Received cash in exchange for stock. Date Purchased investment in stock. Jul. 7 Purchased investment in bonds. r Boat ( No entry required. Available-for-Sale Debt Investments Click the Cash the req Dividend Revenue Equity Investments Fair Value Adjustment-Equity Investments Fair Value Adjustment-Trading Held-to-Maturity Debt Investments Interest Revenue Revenue from Investments Trading Debt Investments 31: Adj Unrealized Holding LossEquity Investments Unrealized Holding Loss-Trading ate Jul. 10: Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat inter ir is pleased with the growth of the business and has decided to invest its temporary excess cash in a brokerage account. The company had the ties transactions.) More Info actions including any ent on the first line of the Acc prprate based on the nu n on the last line of the j mount of time an investr nar Outdoor Adventure C 7 Accounts and Explana 10. July 1 Purchased 5,000 shares in Amar Outdoor Adventure Company for $5 per share. Better Boat does not have significant influence over Amar. Purchased 25% of the stock of Braun Backpacks consisting of 32,500 shares of stock (out of a total of 130,000 shares) for $9 per share. Better Boat does have significant influence over Braun. Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat intends to hold the bond to maturity. The bond pays interest semiannually on June 30 and December 31. Sep. 30 Received dividends of $0.05 per share from Amar. Nov. 1 Received dividends of $0.60 per share from Braun. Dec. 31 Received an interest payment of $3,500 from Crossing Canoes. 31 Braun Backpacks reported net income of $100,000 for the year. 31 Adjusted the Amar stock for a market value of $4.93 per share. f Braun Backpacks consi does have significant inf Accounts and Explanat Print Done iumber in the input fields and then continue to the next