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The beginning balance sheet of Party Source Co. included an $860,000 investment in Eaten stock (20% ownership, Party has significant influence over Eaten). During the
The beginning balance sheet of Party Source Co. included an $860,000 investment in Eaten stock (20% ownership, Party has significant influence over Eaten). During the year, Party Source completed the following investment transactions: (Click the icon to view the transactions.) Read the requirements. Purchased 5,000 shares at $10 per share of Rim Software common stock as a Mar. 3 long-term equity investment, representing 8% ownership, no significant influence. May 15 Received a cash dividend of $0.67 per share on the Rim investment. Dec. 15 Received a cash dividend of $75,000 from Eaten investment. Dec. 31 Received Eaten's annual report showing $110,000 of net income. Dec. 31 Received Rim's annual report showing $900,000 of net income for the year. Dec. 31 Eaten's stock fair value at year-end was $807,000. Dec. 31 Rim's common stock fair value at year-end was $12 per share. Requirements 1. Journalize the transactions for the year of Party Source. 2. Post transactions to T-accounts to determine the December 31, 2018, balances related to the investment and investment income accounts. 3. Prepare Party 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 Rim stock reported
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