
1.
Indicate the method used to account the investment, and explain.
2.
a.
Journalize the purchase of investment in available-for-sale securities’ transaction for the years 2019 and 2020.
b.
Journalize the entry for income reported by investee companies for the years 2019 and 2020.
c.
Journalize the entry for receipt of dividend and interest revenue for the years 2019 and 2020.
d.
Journalize the
3.
a.
Show the reporting of long-term investments, on the
b.
Show the reporting of net unrealized gains (losses) related to investments, on the
c.
Show the revenue related to investments, reported on the income statement of Company P, on December 31.

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Chapter A Solutions
FINANCIAL ACCOUNTING (LOOSELEAF)
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