Question

StrategicStrategic

Investments completed the following investment transactions during

20182018​:

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​(Click the icon to view the​ transactions.)Read the requirements

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.Requirement 1. Journalize

Strategic'sStrategic'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

800800

shares of

PhyflexonPhyflexon

​stock, paying

$ 50$50

per share. The investment represents

4 %4%

ownership in

Phyflexon'sPhyflexon's

voting stock.

StrategicStrategic

does not have significant influence over

PhyflexonPhyflexon.

StrategicStrategic

intends to hold the investment for the indefinite future.

Date			Accounts	Debit	Credit
Jan. 14

Aug.​ 22: Received a cash dividend of

$ 0.24$0.24

per share on the

PhyflexonPhyflexon

stock.

Date			Accounts	Debit	Credit
Aug. 22

Dec.​ 31: Adjusted the investment to its current market value of

$ 45$45

per share.

Date			Accounts	Debit	Credit
Dec. 31

Dec.​ 31:

PhyflexonPhyflexon

reported net income of

$ 330 comma 000$330,000

for the year ended

20182018.

Date			Accounts	Debit	Credit
Dec. 31

Requirement 2. Classify and prepare a partial balance sheet for

StrategicStrategic​'s

PhyflexonPhyflexon

investment as of December​ 31,

20182018.

​(Use a minus sign or parentheses to enter a loss. If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a​ zero.)

Strategic Investments
Balance Sheet (Partial)
December 31, 2018
Current Assets:
Long-term Assets:
Stockholders' Equity
Accumulated Other Comprehensive Income:

Requirement 3. Prepare a partial income statement for

StrategicStrategic

Investments for year ended December​ 31,

20182018.

​(Use a minus sign or parentheses to enter a​ loss.)

Strategic Investments
Income Statement (Partial)
For the Year Ended December 31, 2018
Other Income and (Expenses):

Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Above question is about to write journal entries , partial balance sheet and partial income statement. Refer below images for more detailed solution.
Solution: Requirement 0 : Journal entries : Date particolars Debit Credit 2019 Jan 14. $ 4000. (a) Equity investment Ale or To cash Ale $ 40000 Aug 22 cash Ale To Dividend or Revenue & 192 (6) $ 192 $4000 (c) Dec 31 un realized Holding loss Alc. or (ecpuity investments) To Fair value adjustment (equity investments) $4000 Dec.31. No entry required by Working a Total Notes: cast = no. of Shares y = 200 Shaves X $ 40,000 Price per share. $50 per Share Dividend received - No of Shares & - 800 Shaver & 192 Dividend per Share $0.24 per shave c) unreatzed holding loss = Total fair value - Total cost - $36000(d) - $ 40000 - $(4000)

Total fair value = per sho = - No of shares y market value 800 Shares x $45 per shave 36000 For net by equity investments income earned by the investor. that the have no investee significant is not control, recorded Requirement : Strategic Investments Balance Sheet (partial) December 31, 2018 Amount Assets Long-term Assets Equity investments $ 36000 (at fair value (a) cost $40,000 ) Requirement Strategic Investments Income Statement (partial) for the year ended December 31, 2018 Particolars Amoont other income & (expenses): investment Unreatized Dividend reading loss - equity revenue $ (4000) $ 192 Notl) :-(a) calculated in Requirement 0.