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Required: 1. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). Date January 01, 2021 June 30,
Required: 1. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). Date January 01, 2021 June 30, 2021 December 31, 2021 General Journal Debit 2. At what amount will Livingstone report its investment in the December 31, 2021 balance sheet? Investment 3. Prepare any entry necessary to achieve this reporting objective. Date December 31, 2021 General Journal Credit Debit Credit 4. How would Livingstone's 2021 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) Operating cash flow Investing cash flow Financing cash flow Amount Inflow/Outflow Required: 1. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). Date January 01, 2021 June 30, 2021 December 31, 2021 General Journal Debit 2. At what amount will Livingstone report its investment in the December 31, 2021, balance sheet? Investment 3. Prepare the entry necessary to achieve this reporting objective. Date December 31, 2021 General Journal Credit Debit Credit 4. How would Livingstone's 2021 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.) Amount Operating cash flow Investing cash flow Financing cash flow Inflow/Outflow
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