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There is no solution posted for this problem yet, and i would like to check my work. It is Ch 15PA from horngreen accounting 12th
There is no solution posted for this problem yet, and i would like to check my work. It is Ch 15PA from horngreen accounting 12th edition
Accounting for equity investments The beginning balance sheet of Waterfall Source Co. included a $400,000 investment in Evan stock (20% ownership, Waterfall has significant influence over Evan). During the year, Waterfall Source completed the following investment transactions: Purchased 4,000 shares at $11 per share of Lili Software common stock as a long-term equity investment, representing 7% ownership, no significant influence. Received a cash dividend of $0.61 per share on the Lili investment. Received a cash dividend of $70,000 from Evan investment. Received Evan's annual report showing $300,000 of net income. Received Lili's annual report showing $120,000 of net income for the year. Evan's stock fair value at year-end was $390,000. Lili's common stock fair value at year-end was $12 per share. Mar. 3 May 15 Dec. 15 31 31 31 31 Requirements 1. Journalize the transactions for the year of Waterfall Source. 2. Post transactions to T-accounts to determine the December 31, 2018, balances related to the investment and investment income accounts. Requirements 1. Journalize the transactions for the year of Waterfall Source. 2. Post transactions to T-accounts to determine the December 31, 2018, balances related to the investment and investment income accounts. 3. Prepare Waterfall 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 Lili stock reportedStep by Step Solution
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