On 1 January 2017 Finn Limited made two (2) investments, a 30% shareholding in Mitchell Limited for $100,000 and a 25% shareholding in Green Limited for $50,000. This resulted in Finn having significant influence over both Mitchell Limited and Green Limited

The following table represents the results for Mitchell Limited and Green Limited for the year ending 31 December 2017.

Required:

- Prepare all the journal entries to record the equity method of accounting for both investments of Mitchell Ltd and Green Ltd in the books of Finn Ltd. Use the separate recognition method and show all workings. Journal narrations are not required.

- Calculate the value of the investment in associate, on the Balance Sheet of Finn Ltd as at 31 December 2017. Show all workings.

Profit Revaluation Dividend Paid Gain Mitchel Limited 45,000 10,000 15,000 Green Limited 18,000 5,000 The revaluation gain recorded by Mitchell Ltd relates to the revaluation of Property, plant and equipment and was recorded in the Asset Revaluation Reserve Both companies paid the dividend on 31 December 2017 During the year the following sale of inventory took place between the entities, all inventory remains on hand on the books of the purchasing company as at 31 December 2017 Sale Price Cost Profit Mitchell to Finn 10,000 8,000 2,000 Green to Mitchell 5,000 4,000 1,000