On

March

1,

2018,

Poppy

Company invests

$20,000

in

Sprouts,

Inc. stock.

Sprouts

pays

Poppy

a

$1,000

dividend on

July

1,

2018.

Poppy

sells the

Sprouts's

stock on

July

31,

2018,

for

$20,300.

Assume the investment is categorized as a short-term equity investment and

Poppy

Company does not have significant influence over

Sprouts,

Inc.Read the requirements

LOADING...

.Requirement 1. Journalize the transactions for

Poppy's

investment in

Sprouts'

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

Sprouts,

Inc., stock.

Date			Accounts and Explanation	Debit	Credit
Mar. 1

Next, journalize

Poppy's

receipt of the

July

1 dividend.

Date			Accounts and Explanation	Debit	Credit
Jul. 1

Now journalize

Poppy's

sale of the

Sprouts,

Inc., stock on

July

31.

Date			Accounts and Explanation	Debit	Credit
Jul. 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 $

.

Choose from any list or enter any number in the input fields and then continue to the next question.