The beginning balance sheet of
TextText
Source Co. included
aa
$ 500 comma 000$500,000
investment in
AndyAndy
stock
(4040%
ownership,
TextText
has significant influence over
AndyAndy).
During the year,
TextText
Source completed the following investment transactions:
- X More Info Mar. 3 15 May Dec. 15 Purchased 2,000 shares at $10 per share of Ron Software common stock as a long-term equity investment, representing 4% ownership, no significant influence. Received a cash dividend of $0.94 per share on the Ron investment. Received a cash dividend of $90,000 from Andy investment. Received Andy's annual report showing $120,000 of net income. Received Ron's annual report showing $100,000 of net income for the year. Andy's stock fair value at year-end was $458,000. Ron's common stock fair value at year-end was $11 per share. 31 31 31 31 The beginning balance sheet of Text Source Co. included a 5500,000 investment in Andy stock (40% ownership, Text has significant influence over Andy). During the year, Text Source completed the following investment transactions: Click the icon to view the transactions.) Read the requirements Requirement 1. Joumalize the transactions for the year of Text Source Record debits first, then credits. Select the explanation on the last line of the journal entry table. Ir no entry is required, select "No entry required" on the first line of the Accounts and Explanation colurn and leave the remaining cells blank.) Mar. 3. Purchased 2,000 shares at $10 per share of Ron Software common stock as a long-term equity investment, representing 4% ownership, no significant influence. Date Accounts and Explanation Debit Credit Mar 3 Equity Investments Cast 20 DDD 20.000 Purchased vestment in stock May 15: Received a cash dividend of S0.94 per share on the Ron Investment. Date Accounts and Explanation Debit Credit May 15 1,800 Dividend Revenue 1,880 Received cash dividend. Dec 15: Received a cash dividend of $90,000 from Andy investment. Date Debit Credit Dec, 15 Accounts and Explanation Cash Equity Investments Andy 90.000 90 DDD Choose from any list or enter any number in the input fields and then click Check Answer Dec. 15: Received a cash dividend of $90,000 from Andy investment. Date Accounts and Explanation Debit Credit Dec. 15 Cash 90,000 Equity InvestmentsAndy 90,000 Received cash dividend (equity method). Dec. 31: Received Andy's annual report showing $120,000 of net income. Date Accounts and Explanation Debit Credit Dec. 31 Equity InvestmentsAndy 48,000 Revenue from Investments 48,000 Recorded revenue earned from investment (equity method). Dec. 31: Received Ron's annual report showing $100,000 of net income for the year. Date Accounts and Explanation Debit Credit Dec. 31 No entry required Choose from any list or enter any number in the input fields and then click Check Answer. Dec. 31: Andy's stock fair value at year-end was $458,000. Date Accounts and Explanation Debit Credit Dec. 31 No entry required Dec. 31: Ron's common stock fair value at year-end was $11 per share. Date Accounts and Explanation Debit Credit Dec. 31 2,000 Fair Value AdjustmentEquity Investments Unrealized Holding GainEquity Investments 2,000 | Adjusted equity investment to market value. Date Accounts and Explanation Debit Credit Dec. 31 2,000 Fair Value AdjustmentEquity Investments Unrealized Holding GainEquity Investments 2,000 Adjusted equity investment to market value. Requirement 2. Post transactions to T-accounts to determine the December 31, 2018, balances related to the investment and investment income accounts. (Select the missing investment account.) Equity Investments-Andy Revenue from Investments Equity Investments Dividend Revenue Fair Value AdjustmentEquity Investments
