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 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 Investment 2019 income Amar Braun Crossing More Info ent 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. 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. 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. msi Print Done 8 x nc - Requirements ILL. 1. Journalize the transactions including any entries, if required, at December 31, 2019. Determine the effect on Better Boat Company's net income for the year for each of the three investments. Print Print Done Done sisting of 32.500 shares of stock fout of total of 1300 shares) for $o nor share Bottor Roat do ecided to r Boat ( No entry required. Available-for-Sale Debt Investments Click the cash the reg Dividend Revenue 31 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: Adji Unrealized Holding LossEquity Investments Unrealized Holding LossTrading ate kou Jul. 7: Purchi Received cash in exchange for stock. Date Purchased investment in stock. Jul. 7 Purchased investment in bonds. Jul. 10: Purchased a bond from Crossing Canoes with a face value of $70,000. Better Boat inten 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