On January 1, 2021, Blossom Company, a public company, purchased 35% of the common shares of Triple Titanium Inc. for $525,000. The remaining shares (65%) are held by the family members of the companys founder. Blossom considers this a strategic investment and a critical step into developing consumer markets. Triple Titanium is currently a supplier to Blossom. Blossom placed two members on the 10-person board of directors of Triple Titanium and the two members believe they have been influential on the board through the year. Blossom and Triple Titanium both have December 31 year ends. During 2021, Triple Titanium reported profit of $260,000 and paid total dividends of $85,000.

Prepare the following journal entries for Blossom, assuming significant influence does exist. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

1.		The acquisition of the investment
2.		Investment revenue and receipt of dividends related to the investment

Date	Account Titles and Explanation	Debit	Credit
2021	Dividend PayableDividend ReceivableInvestment in AssociateInvestments at FVTPLCashIncome from Investment in AssociateDividend RevenueNo Entry
	Dividend RevenueInvestment in AssociateDividend PayableCashNo EntryDividend ReceivableInvestments at FVTPLIncome from Investment in Associate
	(To record purchase of investment.)
2021	Investment in AssociateCashInvestments at FVTPLDividend ReceivableDividend PayableNo EntryIncome from Investment in AssociateDividend Revenue
	Dividend ReceivableInvestment in AssociateDividend RevenueCashInvestments at FVTPLDividend PayableNo EntryIncome from Investment in Associate
	(To record dividend received from associate.)
2021	Investments at FVTPLIncome from Investment in AssociateDividend ReceivableCashDividend RevenueInvestment in AssociateNo EntryDividend Payable
	Investment in AssociateDividend RevenueDividend ReceivableInvestments at FVTPLDividend PayableCashNo EntryIncome from Investment in Associate
	(To record investment income from associate.)

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Question Part Score

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During 2022, Triple Titanium reports profit of $250,000 and pays total dividends of $72,000. Prepare the required journal entries related to these transactions on Blossoms books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
2022	Dividend PayableShort-Term Investments-Image Fashion Common SharesDividend ReceivableNo EntryInvestments at FVTPLLong-Term Investments-Image Fashion Common SharesCashDividend RevenueIncome from Investment in AssociateInvestment in Associate
	Dividend RevenueLong-Term Investments-Image Fashion Common SharesInvestment in AssociateIncome from Investment in AssociateCashNo EntryShort-Term Investments-Image Fashion Common SharesInvestments at FVTPLDividend PayableDividend Receivable
	(To record dividend received from associate.)
2022	No EntryDividend PayableInvestment in AssociateCashShort-Term Investments-Image Fashion Common SharesDividend RevenueLong-Term Investments-Image Fashion Common SharesIncome from Investment in AssociateDividend ReceivableInvestments at FVTPL
	Investments at FVTPLShort-Term Investments-Image Fashion Common SharesDividend RevenueIncome from Investment in AssociateNo EntryLong-Term Investments-Image Fashion Common SharesCashDividend PayableInvestment in AssociateDividend Receivable
	(To record investment income from associate.)

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Question Part Score

--/0.3

Determine the balance in the investment account on December 31, 2021, and December 31, 2022.

		2021		2022
Ending balance		$		$

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Question Part Score

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Show how the investment account and related revenue accounts would be reported on the financial statements for December 31, 2021.

BLOSSOM COMPANY Balance Sheet (Partial) Year Ended December 31, 2021December 31, 2021Quarter Ended December 31, 2021
Current AssetsNon-Current AssetsProperty, Plant and EquipmentIntangible AssetsShort-Term Investments
Investments at Fair Value through Profit or LossInvestments at Fair Value through Other Comprehensive IncomeInvestments at Amortized Cost, Treasury BillInvestment in AssociateInvestments at Amortized Cost		$

BLOSSOM COMPANY Income Statement (Partial) Quarter Ended December 31, 2021Year Ended December 31, 2021December 31, 2021
Other RevenuesTotal ExpensesTotal RevenuesGross Profit / (Loss)Net Income / (Loss)Other Expenses
Gain on Sale of Trading InvestmentsDividend RevenueLoss on Sale of trading InvestmentsInterest RevenueIncome from Investment in AssociateInterest Expense				$