Question

Strategic Investments completed the following investment transactions during 2018: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Joumalize Strategic's investment transactions. 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 800 shares of Phyflexon stock, paying $50 per share. The investment represents 4% ownership in Phyflexon's voting stock. Strategic does not have significant influence over Phyflexon. Strategic intends to hold the inntmant for the indafot fire

Answer 1

1	Date	Accounts	Debit	Credit
	Jan 14	Equity Investments—Phyflexon	$40,000		(800 shares x $50 per share)
		Cash		$40,000
	Aug 22	Cash	$192		(800 shares x $0.24 per share)
		Dividend Revenue		$192
	Dec 31	Unrealized Holding Loss—Equity Investments	$4,000		[800 shares x ($50-$45) per share]
		Fair Value Adjustment—Equity Investments		$4,000
	Dec 31	No entry required
2		Strategic Investments
		Balance Sheet (Partial)
		Current Assets:
		Long-term Assets:
		Equity Investments—Phyflexon	$40,000
		Stockholders' Equity
		Accumulated Other Comprehensive Income:
		Unrealized Holding Loss—Equity Investments	-$4,000
3		Strategic Investments
		Income Statement (Partial)
		For the Year Ended December 31, 2018
		Other Income and (Expenses):
		Dividend Income	$192
		Unrealized Holding Loss—Equity Investments	-$4,000
				-$3,808