Part 1

The beginning balance sheet of Page Source Co. included a $900,000 investment in Ellen stock(30% ownership, Page has significant influence over Ellen). During the year, Page Source completed the following investment transactions:

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Part 1

Requirement 1. Journalize the transactions for the year of

Page

Source. (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 and Explanation column and leave the remaining cells blank.)

Mar. 3: Purchased

9,000

shares at

$10

per share of

Lime

Software common stock as a long-term equity investment, representing

5%

ownership, no significant influence.

Date	Accounts and Explanation	Debit	Credit
Mar. 3

Part 2

May 15: Received a cash dividend of

$0.63

per share on the

Lime

investment.

Date	Accounts and Explanation	Debit	Credit
May 15

Part 3

Dec. 15: Received a cash dividend of

$50,000

from

Ellen

investment.

Date	Accounts and Explanation	Debit	Credit
Dec. 15

Part 4

Dec. 31: Received

Ellen's

annual report showing

$110,000

of net income.

Date	Accounts and Explanation	Debit	Credit
Dec. 31

Part 5

Dec. 31: Received

Lime's

annual report showing

$300,000

of net income for the year.

Date	Accounts and Explanation	Debit	Credit
Dec. 31

Part 6

Dec. 31:

Ellen's

stock fair value at year-end was

$883,000.

Date	Accounts and Explanation	Debit	Credit
Dec. 31

Part 7

Dec. 31:

Lime's

common stock fair value at year-end was

$11

per share.

Date	Accounts and Explanation	Debit	Credit
Dec. 31

Part 8

Requirement 2. Post transactions to T-accounts to determine the December 31,

2024,

balances related to the investment and investment income accounts. (Select the missing investment account.)

Equity InvestmentsEllen		Revenue from Investments
Equity Investments		Dividend Revenue
Fair Value AdjustmentEquity Investments

Part 9

Requirement 3. Prepare

Page

Source's partial balance sheet at December 31,

2024,

from your answers in Requirement 2. (If a box is not used in the partial balance sheet, leave the box empty; do not select a label or enter a zero.)

Page Source, Co.
Balance Sheet (Partial)
December 31, 2024
Assets
Current Assets:
Long-term Assets:
Stockholders' Equity
Accumulated Other Comprehensive Income:

Part 10

Requirement 4. Where is the unrealized holding gain or loss associated with the

Lime

stock reported?

The unrealized holding gain or loss associated with the Lili stock is included on the income statement in

the

accumulated other comprehensive income section on the balance sheet.

balance sheet as a contra account to the trading debt investment account.

revenues section of the income statement.

other income and (expenses) section on the income statement.

Mar. 3	Purchased 9,000 shares at $10 per share of Lime Software common stock as a long-term equity investment, representing 5% ownership, no significant influence.
May 15	Received a cash dividend of $0.63 per share on the Lime investment.
Dec. 15	Received a cash dividend of $50,000 from Ellen investment.
Dec. 31	Received Ellen's annual report showing $110,000 of net income.
Dec. 31	Received Lime's annual report showing $300,000 of net income for the year.
Dec. 31	Ellen's stock fair value at year-end was $883,000.
Dec. 31	Lime's common stock fair value at year-end was $11 per share.