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The accounting records of Jamaican Importers, Inc., at January 1, 2018. included the following: Assets: Investment in IBM common shares Less: Fair value adjustment $2,195,000

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The accounting records of Jamaican Importers, Inc., at January 1, 2018. included the following: Assets: Investment in IBM common shares Less: Fair value adjustment $2,195,000 (230,000) $1,965,000 No changes occurred during 2018 in the investment portfolio. Required: Prepare appropriate adjusting entry(s) at December 31, 2018, assuming the fair value of the IBM common shares was 1. $1,415.000 2. $1,989,000 3. $2,205,000 (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) Answer is not complete. No Transactions General Journal Credit Debit 550,000 X Investment in bonds Investment in bonds 550.000 Module 5 (Chapter 12) Homework i As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659,000 points Supped Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. 00 Complete this question by entering your answers in the tabs below. Required Required 2 Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (IF no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the purchase of AMC Supplies shares for 5620,000 as a long-term investment Note: Enter debits before credits Event General Journal Debit Credit

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