The beginning balance sheet of Desk Source Co. included an $800,000 investment in Elk stock (40% ownership Desk has significant influence over Elk). During the year, Desk Source completed the following investment transactions: (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize the transactions for the year of Desk 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 7,000 shares at $9 per share of Jack Software common stock as a long-term equity investment, representing 6% ownership, no significant influence Date Accounts and Explanation Debit Credit Mar. 3 : sel i More Info Da 3 Mar. 3 May 15 Dec. 15 Dec. 31 Purchased 7,000 shares at $9 per share of Jack Software common stock as a long- term equity investment, representing 6% ownership, no significant influence. Received a cash dividend of $0.53 per share on the Jack investment Received a cash dividend of $45,000 from Elk investment, Received Elk's annual report showing $100,000 of net income. Received Jack's annual report showing $700,000 of net income for the year. Elk's stock fair value at year-end was $795,000. Jack's common stock fair value at year-end was $12 per share, Dec. 31 Dec. 31 Dec. 31 Print Done 1. Journalize the transactions for the year of Desk Source. 2. Post transactions to T-accounts to determine the December 31, 2018, balances related to the investment and investment income accounts. 3. Prepare Desk Source's partial balance sheet at December 31, 2018, from your answers in Requirement 2. 4. Where is the unrealized holding gain or loss associated with the Jack stock reported? Print Done The beginning balance sheet of Desk Source Co. included an $800,000 investment in Elk stock (40% ownership Desk has significant influence over Elk). During the year, Desk Source completed the following investment transactions: (Click the icon to view the transactions.) Read the requirements Requirement 1. Journalize the transactions for the year of Desk 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 7,000 shares at $9 per share of Jack Software common stock as a long-term equity investment, representing 6% ownership, no significant influence Date Accounts and Explanation Debit Credit Mar. 3 : sel i More Info Da 3 Mar. 3 May 15 Dec. 15 Dec. 31 Purchased 7,000 shares at $9 per share of Jack Software common stock as a long- term equity investment, representing 6% ownership, no significant influence. Received a cash dividend of $0.53 per share on the Jack investment Received a cash dividend of $45,000 from Elk investment, Received Elk's annual report showing $100,000 of net income. Received Jack's annual report showing $700,000 of net income for the year. Elk's stock fair value at year-end was $795,000. Jack's common stock fair value at year-end was $12 per share, Dec. 31 Dec. 31 Dec. 31 Print Done 1. Journalize the transactions for the year of Desk Source. 2. Post transactions to T-accounts to determine the December 31, 2018, balances related to the investment and investment income accounts. 3. Prepare Desk Source's partial balance sheet at December 31, 2018, from your answers in Requirement 2. 4. Where is the unrealized holding gain or loss associated with the Jack stock reported? Print Done
