Assessing Financial Statement Effects of Passive and Equity Method Investments On January 1, Ball Corporation purchased...

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Assessing Financial Statement Effects of Passive and Equity Method Investments On January 1, Ball Corporation purchased share

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Answer 1

Answer #1

(a)

Transaction	Balance Sheet									Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital	Revenue	-	Expenses	=	Net Income
1	-150000		150000
2
3	12000								12000	12000				12000
4			40000						40000	40000				40000

(b)

Transaction	Balance Sheet									Income Statement
Transaction	Cash Asset	+	Noncash Assets	=	Liabilities	+	Contributed Capital	+	Earned Capital	Revenue	-	Expenses	=	Net Income
1	-150000		150000
2			12000						12000	12000				12000
3	12000		-12000
4

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Answer 2

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