Question

Not sure how to do this one. thanks

Money Man Investments completed the following investment transactions during 2018 Click the icon lo view the transactions.) 1 Joumalize the entries for 2018. Explanations are not required. 2. What account s) and amounts), if any, would be reported on Money Man's income statement for the year ended December 31 More Into Jan. 14 Purchased 500 shares of Sysky stock, paying $52 per share. The investment represents 2% ownership in Sysky's voting stock Money Man does not have significant influence over Sysky. Money Man intends to hold the investment for the indefinite future Aug. 22 Received a cash dividend of 50.51 per share on the Sysky stock. Date Accounts Debit Credit Aug. 22 Cash 255 Aug. 22 Received a cash dividend of $0.51 per share on the Sysky stock. Dec. 31 Adjusted the Sysky investment to its current market value of $53 Dividend Revenue 255 PrintDone Dec. 31: Adjusted the Sysky investment to its current market value of 553. Date Accounts Debit Credit Dec. 31 26500 26500

Answer 1

1.

Date	Accounts	Debit	Credit
Jan. 14	Equity investments-Sysky	26000
	Cash (500 x $52)		26000
Aug. 22	Cash (500 x $0.51)	255
	Dividend revenue		255
Dec. 31	Fair value adjustment-equity investments	500
	Unrealised gain on investments [500 x ($53 - $52)]		500

2.

Money Man Investments
Income Statement (Partial)
For the Year Ended December 31, 2018
Other Revenues and (Expenses)
Dividend revenue	255

The unrealized gain on investments is reported as part of the stockholders' equity and is excluded from the income statement.