Sweetwater Services Ltd. acquired 25 % of the common shares of Bella Roma Ltd. on January 1,2018, by paying $3,760,000 for 187,000 shares. Bella Roma declared a $0.50-per-share cash dividend in each quarter that was received on March 15, June 15, September 15, and December 15. Bella Roma reported net income of $2,080,000 for the year. At December 31, the market price of the Bella Roma shares was $17 per share. Prepare the journal entries for Sweetwater Services for 2018,, assuming Sweetwater cannot exercise significant influence over Bella Roma and uses the fair value through profit or loss model. (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 O for the amounts.) Date Account Titles and Explanation Credit Debit Held for Trading Investments Jan. 1 3760000 3760000 cash Mar. 15 93500 Cash 93500 Dividend Revenue 93500 June 15 Cash 93500 Dividend Revenue 93500 Sept. 15 Cash 93500 Dividend Revenue 93500 Dec. 15 Cash 93500 Dividend Revenue 581000 Unrealized Loss on Held for Trading Investments Dec. 31 : 581000 Held for Trading Investments Part 2 Prepare the journal entries for Sweetwater Services for 2018, assuming Sweetwater can exercise significant influence over Bella Roma and uses the equity method. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 Held for Trading Investments 3760000 Cash 3760000 Mar. 15 # 93500 Cash 93500 Held for Trading Investments 93500 June 15 Cash 93500 Held for Trading Investments 93500 Sept. 15 : Cash 93500 Held for Trading Investments 93500 Dec. 15 Cash 93500 Held for Trading Investments 520000 Held for Trading Investments Dec. 31: 520000 Part 3 Your answer is partially correct Prepare the journal entries for Sweetwater Services for 2018, assuming that the company reports under ASPE and has chosen to account for its investment using the cost model. (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 O for the amounts.) Credit Debit Account Titles and Explanation Date 3760000 Held for Trading Investments Jan. 1 3760000 Cash 93500 Cash Mar. 15 : 93500 Dividend Revenue 93500 June 15 Cash 93500 Dividend Revenue 93500 Cash Sept. 15 93500 Dividend Revenue 93500 Cash Dec. 15 # 93500 poddenD Part 4 For parts (a), (b), and (d), calculate the ending balance in each account affected by this investment. You may omit the Cash account. (f an amount reduces the account balance then enter with negative sign preceding the number e.g. -45 or parentheses e.s. (45).) No Cost Significant Significant Model Influence Influence Statement of Financial Position: Long-term investments Purchase price $ S Receipt of dividends Investee's profit Fair value adjustment Carrying amount Dividend revenue Income from associates Unrealized loss on long-term investments $ Income Statement Dividend revenue Unrealized loss on long-term investments List of Accounts Accumulated Other Comprehensive Income Accumulated Other Comprehensive Loss Bonds Payable Cash Dividends Receivable Dividend Revenue Held for Trading Investments Income ffom Associates Interest Expense Interest Payable Interest Receivable Interest Revenue Investment in Associates Long-Term Investments Bond Redemption Loss on No Entry Realized Gain on Held for Trading Investments Realized Gain on Held for Trading Investments Realized Gain on Long -Term Investments Realized Loss on Held for Trading Investments Realized Loss on Investment in Associates Realized Gain on Trading Investments Realized Loss on Trading Investments Trading Investments Unrealized Gain on Held for Trading Investments Unrealized Gain on Long-Term Investments Unrealized Loss on Held for Trading Investments Unrealized Loss on Long-Term Investments Unrealized Gain on Trading Investments Unrealized Loss on Trading Investments