Jan. 14 Purchased 400 shares of Technomite stock, paying $56 per share. The investment represents 25% ownership in Technomite's voting stock and Money Man has significant influence over Technomite. Money Man intends to hold the investment for the indefinite future. Aug. 22 Received a cash dividend of $0.27 per share on the Technomite stock. Dec. 31 Technomite's current market value is $51 per share. 31 Technomite reported net income of $180,000 for the year ended 2018.
Jan. 14 Purchased 400 shares of Technomite stock, paying $56 per share. The investment represents 25% ownership in Technomite's voting stock and Money Man has significant influence over Technomite. Money Man intends to hold the investment for the indefinite future. Aug. 22 Received a cash dividend of $0.27 per share on the Technomite stock. Dec. 31 Technomite's current market value is $51 per share. 31 Technomite reported net income of $180,000 for the year ended 2018.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Accounting for equity investments
Money Man Investments completed the following transactions during 2018:
Requirements
- Journalize Money Man’s transactions. Explanations are not required.
- Classify and prepare partial financial statements for Money Man’s 25% Technomite investment for the year ended December 31, 2018.
Transcribed Image Text:Jan. 14 Purchased 400 shares of Technomite stock, paying $56 per share. The
investment represents 25% ownership in Technomite's voting stock and
Money Man has significant influence over Technomite. Money Man
intends to hold the investment for the indefinite future.
Aug. 22 Received a cash dividend of $0.27 per share on the Technomite stock.
Dec. 31 Technomite's current market value is $51 per share.
31 Technomite reported net income of $180,000 for the year ended 2018.
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