Question

Money Man Investments completed the following investment transactions during 2018: (Click the icon to view the transactions.) Requirements 1. Journalize the entries for 2018. Explanations are not required. 2. What account(s) and amount(s), if any, would be reported on Money Man's income statement for the year ended December 31, 2018? Requirement 1. Journalize the entries for 2018. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries. If no entry is required, select "No entry required" on the first line of the Accounts column and leave the remaining cells blank.) Jan. 14: Purchased 400 shares of Technomite stock, paying $47 per share. The investment represents 4% ownership in Technomite's voting stock. Money Man does not have significant influence over Technomite. Money Man intends to hold the investment for the indefinite future. Date Accounts Debit Credit i More Info Jan. 14 Jan. 14 Purchased 400 shares of Technomite stock, paying $47 per share. The investment represents 4% ownership in Technomite's voting stock. Money Man does not have significant influence over Technomite. Money Man intends to hold the investment for the indefinite future. Aug. 22 Received a cash dividend of $0.66 per share on the Technomite stock. Dec. 31 Adjusted the Technomite investment to its current market value of $48. Print Done
Please answer all parts

Answer 1

As intention of hold is different in both the investment.

First investment is hold with the intention of hold hence fair vaule adjustment done through OCI whereas in second investment the intention is to sale in near future hence adjustment in fair value is through profit and loss

Subject Date Tonly Augez – Date Technomile stock inv. $18800 Cash. $18800 (Yox $47) Cash $264 Dindand income $264 (0.66 x 400) Technomile shocle investment $400 Unrealised gain COCI.) $400 yox $1) Decal On Dec 31, 2018 inuestment will be reported - at value & 19200. Mary income statement would report OCI of $400 e dini dend income $264 Manchenes Deco Golden shock investment Cash Bao $4800D Cash $3300 Diudend income $3300

Dees) roots Unsealised las. (Il) Golden shock hero $12000 Investment will be camied at value 9 $ Barra