Please show the formula.? For example, Is Investment Purchased (Addition Section) of 100,000 comes from Journal entry 1/1XX Cash? How about equity income and Dividend amount from the balance sheet? The numbers from the journal entry have to be linked to the Balance Sheet. Appreciate any help. Case Requirement: Populating a result, without showing the supporting calculation, will not be sufficient.

On 1/1/xx, Company A purchases 100% of Company B for $100,000 cash. On 12/31/xx, Company B realizes profit of $20,000 and pays dividends of $5,000. If the answer below is correct please show calculations by linking to the Balance sheet. Thanks.

Credit Debit $100,000 Date Account Title and Explanation 1/1/XX Investment Cash (To record the investment made in Co. B) $100,000 $20.000 31/12/XX Investment Equity income (To record the equity income) $20,000 $5,000 31/12/XX Cash Investment (To record the dividends received from Co. B) $5,0001 Amount $0 Investment account 1/1/XX balance Add: Additions: Investment purchased Equity income $100,000 $20,000 $120,000 $120,000 Less: Deductions Dividends received 31/12/XX balance $5,000 ($5,000 $115,000 Credit Debit $100,000 Date Account Title and Explanation 1/1/XX Investment Cash (To record the investment made in Co. B) $100,000 $20.000 31/12/XX Investment Equity income (To record the equity income) $20,000 $5,000 31/12/XX Cash Investment (To record the dividends received from Co. B) $5,0001 Amount $0 Investment account 1/1/XX balance Add: Additions: Investment purchased Equity income $100,000 $20,000 $120,000 $120,000 Less: Deductions Dividends received 31/12/XX balance $5,000 ($5,000 $115,000