Question

Know All Investments completed the following transactions during 2018 (Click the icon to view the transactions.) Requirements 1. Journalize Know All's transactions. Explanations are not required. 2. Classify and prepare partial financial statements for Know Al's 40% Phyflexon investment for the year ended December 31, 2018 Requirement 1. Journalize Know All's 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 Phy exon stock, paying S53 per share. The investment represents 40% ownership in Phy exons voting stock and Know All has significant influence over Phy exon. Know Al intends to hold the investment for the indefinite future Date Accounts Debit Credit More Info Jan. 14 Jan. 14 Purchased 800 shares of Phyflexon stock, paying $53 per share. The investment represents 40% ownership in Phyflexon's voting stock and Know All has significant influence over Phyflexon. Know All intends to hold the investment for the indefinite future Aug. 22 Received a cash dividend of $0.85 per share on the Phyflexon stock Dec. 31 Phyflexon's current market value is $52 per share. hoose from any list or enter any number in the input fields and then click Check Answer. 31 Phyflexon reported net income of $150,000 for the year ended 2018 parts

Answer 1

1.

Date	Accounts	Debit	Credit
Jan. 14	Investment in Phyflexon	42400
	Cash (800 x $53)		42400
Aug. 22	Cash (800 x $0.85)	680
	Investment in Phyflexon		680
Dec. 31	No entry required
Dec. 31	Investment in Phyflexon	60000
	Investment income (40% x $150000)		60000

2.

Know All Investments
Balance Sheet (Partial)
December 31, 2018
Current Assets:
Long-term ssets:
Investment in Phyflexon	101720
Stockholders' Equity
Accumulated Other Comprehensive Income:

Know All Investments
Income Statement (Partial)
For the Year Ended December 31, 2018
Other Income and (Expenses)
Investment income	60000