The beginning balance sheet of Desk Source Co. included a $700,000 investment in Est stock (25% ownership, Desk has significant influence over Est). During the year, Desk Source completed the following investment transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions for the year of Desk Source. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Mar. 3: Purchased 9,000 shares at $8 per share of Rast Software common stock as a long-term equity investment, representing 2% ownership, no signifi Debit Date Accounts and Explanation Credit Mar. 3 Requirements 1. Journalize the transactions for the year of Desk Source. 2. Post transactions to T-accounts to determine the December 31, 2024, balances related to the investment and investment income accounts. 3. Prepare Desk Source's partial balance sheet at December 31, 2024, from your answers in Requirement 2. 4. Where is the unrealized holding gain or loss associated with the Rast stock reported? More info Mar. 3 May 15 Dec. 15 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Purchased 9,000 shares at $8 per share of Rast Software common stock as a long-term equity investment, representing 2% ownership, no significant influence. Received a cash dividend of $0.44 per share on the Rast investment. Received a cash dividend of $60,000 from Est investment. Received Est's annual report showing $110,000 of net income. Received Rast's annual report showing $900,000 of net income for the year. Est's stock fair value at year-end was $667,500. Rast's common stock fair value at year-end was $14 per share Print Done - X
The beginning balance sheet of Desk Source Co. included a $700,000 investment in Est stock (25% ownership, Desk has significant influence over Est). During the year, Desk Source completed the following investment transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions for the year of Desk Source. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.) Mar. 3: Purchased 9,000 shares at $8 per share of Rast Software common stock as a long-term equity investment, representing 2% ownership, no signifi Debit Date Accounts and Explanation Credit Mar. 3 Requirements 1. Journalize the transactions for the year of Desk Source. 2. Post transactions to T-accounts to determine the December 31, 2024, balances related to the investment and investment income accounts. 3. Prepare Desk Source's partial balance sheet at December 31, 2024, from your answers in Requirement 2. 4. Where is the unrealized holding gain or loss associated with the Rast stock reported? More info Mar. 3 May 15 Dec. 15 Dec. 31 Dec. 31 Dec. 31 Dec. 31 Purchased 9,000 shares at $8 per share of Rast Software common stock as a long-term equity investment, representing 2% ownership, no significant influence. Received a cash dividend of $0.44 per share on the Rast investment. Received a cash dividend of $60,000 from Est investment. Received Est's annual report showing $110,000 of net income. Received Rast's annual report showing $900,000 of net income for the year. Est's stock fair value at year-end was $667,500. Rast's common stock fair value at year-end was $14 per share Print Done - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The beginning balance sheet of Desk Source Co. included a $700,000 investment in Est stock (25% ownership, Desk has significant influence over Est). During the year, Desk Source completed the following investment transactions:
i (Click the icon to view the transactions.)
Read the requirements.
Requirement 1. Journalize the transactions for the year of Desk Source. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and
leave the remaining cells blank.)
Mar. 3: Purchased 9,000 shares at $8 per share of Rast Software common stock as a long-term equity investment, representing 2% ownership, no signifi
Date
Accounts and Explanation
Credit
Mar. 3
Requirements
Debit
1. Journalize the transactions for the year of Desk Source.
2. Post transactions to T-accounts to determine the December 31, 2024,
balances related to the investment and investment income accounts.
3. Prepare Desk Source's partial balance sheet at December 31, 2024, from your
answers in Requirement 2.
4. Where is the unrealized holding gain or loss associated with the Rast stock
reported?
Print
- X
Done
C
More info
Mar. 3
May 15
Dec. 15
Dec. 31
Dec. 31
Dec. 31
Dec. 31
Purchased 9,000 shares at $8 per share of Rast Software common stock as a
long-term equity investment, representing 2% ownership, no significant influence.
Received a cash dividend of $0.44 per share on the Rast investment.
Received a cash dividend of $60,000 from Est investment.
Received Est's annual report showing $110,000 of net income.
Received Rast's annual report showing $900,000 of net income for the year.
Est's stock fair value at year-end was $667,500.
Rast's common stock fair value at year-end was $14 per share.
Print
Done
- X
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