LOA

On March 1, 2018, Poppy Company invests $15,000 in Iris, Inc. stock. Iris pays Poppy a $600 dividend on October 1, 2018. Poppy sells the Iris's stock on October 31, 2018, for $15,600. Assume the investment is categorized as a short-term equity investment and Poppy Company does not have significant influence over Iris, Inc. Read the requirements Requirement 1. Journalize the transactions for Poppy's investment in Iris' stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Poppy's initial investment in Iris, Inc., stock. Date Accounts and Explanation Debit Credit Mar. 1 Requirements Next, journalize Poppy's receipt of the October 1 dividend. Accounts and Explanation 1. Journalize the transactions for Poppy's investment in Iris's stock. 2. What was the net effect of the investment on Poppy's net income for the year ended December 31, 2018? Date Debit Credit Oct. 1 Print Done Now journalize Poppy's sale of the Iris, Inc., stock on October 31. Date Accounts and Explanation Debit Credit Oct. 31 Requirement 2. What was the net effect of the investment on Poppy's net income for the year ended December 31, 2018? Poppy's net income for the year has by $ Adjusted available-for-sale debt investments to market value. Adjusted trading debt investments to market value. Disposed of bond at maturity. Disposed of investment in stock Purchased investment in bonds. Purchased investment in stock. Received cash dividend