Question

Top Team Investments completed the following investment transactions during 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize Top Team's investment transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from joumal 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 $51 per share. The investment represents 2% ownership in Technomite's voting stock. Top Team does not have significant influence over Technomite. Top Team intends to hold the investment for the indefinite future. Date Accounts Debit Credit Jan. 14 i More Info Jan. 14 Purchased 400 shares of Technomite stock, paying $51 per share. The investment represents 2% ownership in Technomile's voting stock. Top Team does not have significant influence over Technomite. Top Team intends to hold the investment for the indefinite future. Aug. 22 Received a cash dividend of $0.21 per share on the Technomite stock. Dec. 31 Adjusted the investment to its current market value of S46 per share. 31 Technomite reported net income of $420,000 for the year ended 2018 i Requirements Print Done 1. Journalize Top Team's investment transactions. Explanations are not required. 2. Classify and prepare a partial balance sheet for Top Team's Technorite investment as of December 31, 2018 3. Prepare a partial income statement for Top Team Investments for year ended December 31, 2018. hafar

Answer 1

D. Journalizing Top Teams Investment Transactions! Date Accounts Debit (6) Credit ($) Son 14 Long Term Investments - AFS $20,400 lla cash lnoo shares * $51) $20;hoo Augaz Cash 2400 sharest $0.21) $84. Dividend Revenue. $ Dec 31 $2,000. unrealized Hobing LOSS - AFS Fair value Adjustment - AES Luoo shares x[$51 - 45463); $2,000 Dec 31 NO entry required

TOP Team Investment met 't Balance sheet (partial) December 31, 2018 . Amount in Dollars Current Assets; Long Term Assets! Long Term Investments :- Afslat fair value). * 10.400 stockholders Equity: Accumulated other comprehensive Income's unrealized holding .LOSS - AES $12,000)

TOP Team Investments comprehensive Income statement for the year ended December 31, 2018 : De Amount in Dollars Net Income $ 82,000 Othey comprehensive Income - Unrealized Holding LOSS-AES $(21000) comprehensive Income lloss) $80,000 Note: D 'It is assumes that top Team Investment's net income for the year is $82,000. 2). AFS stands for available for sale.
Note: Long Term Investments - AFS (at fair value) = $20,400 - $2,000 = $18,400

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