### Investment Journal Entries for Investment Accounting#### Situation 1: Crane Tables**Investment Details:**- On April 1, 2025, Crane Tables acquired 15% of the 5,000,000 shares of common stock of Robot Sofas.- Acquisition cost: $8.50 per share.**Event: Cash Dividend**- On August 8, Robot Sofas declared and paid a $266,000 cash dividend.**Event: Year-End Report**- On December 31, Robot Sofas' market price was $9.00 per share.- Reported net income for the year: $747,000.#### Situation 2: Waterway Company**Investment Details:**- On January 1, 2025, Waterway Company purchased 40% of Santos Corporation's 502,000 outstanding shares of common stock.- Acquisition cost: $12 per share.**Event: Cash Dividend**- On October 25, Santos declared and paid a cash dividend of $0.40 per share.**Event: Year-End Report**- On December 31, Santos reported a net income of $821,000.- Market price of common stock: $13 per share.### Required Journal EntriesPrepare all necessary journal entries for the year 2025 for both situations. **Note:**- Credit account titles are automatically indented when the amount is entered.- If no entry is required, select “No Entry” for the account titles and enter 0 for amounts.- List all debit entries before credit entries.- Record journal entries in the order presented in the problem. #### Journal Entry Templates**Crane Tables**| Date | Account Titles and Explanation | Debit | Credit ||------------|--------------------------------|--------|--------|| | | | || | | | || | | | |**Waterway Company**| Date | Account Titles and Explanation | Debit | Credit ||------------|--------------------------------|--------|--------|| | | | || | | | || | | | |### Graphs and DiagramsThere are no graphs or diagrams in this content. ### Situation 2: Waterway CompanyThis section appears to be a data input form, possibly for recording or analyzing situations related to the Waterway Company. The form is structured with five rows and four columns. Each row contains:1. A dropdown menu (indicated by the downward arrow).2. Three textbox fields for input.Each column is meant to gather specific information as follows:- **Column 1**: Dropdown selection menu.- **Column 2**: Textbox for user input.- **Column 3**: Textbox for user input.- **Column 4**: Textbox for user input.This input form allows users to select options from the dropdown menus and enter corresponding data into the textbox fields for each row. This form structure could be used for various educational purposes, such as hypothetical business scenarios, tracking data, or analyzing company metrics in an academic setting.

ables acquired 15% stock Kobot Sofa: per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $266,000 cash dividend. On December 31, Robot Sofas market price was $9.00 per hare and the company reported net income of $747,000 for the year. ituation 2 On January 1, 2025, Waterway Company purchased 40% of Santos Corporation 502,000 outstanding shares of common stock at a otal cost of $12 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos eported a net income of $821,000 for the year and the market price of its common stock was $13 per share.

ables acquired 15% stock Kobot Sofa: per share on April 1, 2025. On August 8, Robot Sofas declared and paid a $266,000 cash dividend. On December 31, Robot Sofas market price was $9.00 per hare and the company reported net income of $747,000 for the year. ituation 2 On January 1, 2025, Waterway Company purchased 40% of Santos Corporation 502,000 outstanding shares of common stock at a otal cost of $12 per share. On October 25, Santos declared and paid a cash dividend of $0.40 per share. On December 31, Santos eported a net income of $821,000 for the year and the market price of its common stock was $13 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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