Question

Creative Investments completed the following transactions during 2018: O (Click the icon to view the transactions.) Requirements 1. Joumalize Creative's transactions. Explanations are not required. 2. Classity and prepare partial financial statements for Creative's 36% Velocon investment for the year ended December 31, 2018 Requirement 1. Journalize Creative's transactions. Explanations are not required (Record debits fist, then credits. Excude explenations from joumal entries. If no entry is requirend, select "No entry required on the firit ine of the Accounts oolumn and leave the remring oele blark) Jan. 14: Purchased 900 shares of Velcon stock, paying $42 per share. The investment represents 36% ownership in Veloon's voting stook and Creative has signicant influence over Velcon. Creative intends to hold the investment for the indefinite future. Date Accounts Debit Credit Jan 14 Incorrect: 0 (0/1) 0/10) Choose from any list or enter any number in the input fields and then dick Check Answer. parts remaining Cear All Check Answer

Answer 1

Solution Given that Date 60 Particolars Do 37800 Janly Long-teom investment available for sale (aoo x y z cash 37300 purchased investment in shapes 621 Aug 22 Cash (Goox 0.69 621 Dividenal income Received ash biur dend DEC 31 on dealized holding loss-available for sale (qoox(-33) Fão value adjustment -available for sale 3600 ndjusted investment to its curgentan lang oked No entoy because nef income earned by the investee is Dec 31 not recorded by the investor in case of available forsale investments 3620

Balance sheet Assets $ 3U 200 900 Shades x 38 - Long te om assets Long teom investment -available for sale stock holder's equity Accumulated other comprehensive ancome: unrealized holding loss- available for sale investment 3600 NOVATE