Question

thank you!!

Trader Investments completed the following transactions during 2018: Click the icon to view the transactions) Requirements 1. Joumalize Trader's transactions. Explanations are not required 2. Classity and prepare partial financial statements for Trader's 40% Microscape investment for the year ended December 31, 2018 Requirement 1. Journalize Trader's 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 200 shares of Microscape stock, paying 552 per share. The investment represents 40% ownership in Microscape's voting stock and Trader has significant influence over Microscape. Trader intends to hold the investment for the indefinite future. Accounts Debit Credit Jan 14 Aug 22: Received a cash dividend of $0.42 per share on the Microscape stock. Date Accounts Debit Credit Aug. 22 Dec. 31: Microscape's current market value is $51 per share. Date Accounts Dec. 31

Answer 1

Joural Entry
Date	Account Tittle	Debit	Credit
14-Jan	Investment in Microscape ( 200X 52)	$10,400.00
	Cash		$10,400.00
	Record acquistion of Share
22-Aug	Cash ($0.42 X 200)	$84.00
	Investment in Microscape		$84.00
	Record Dividend Received
	Investment in Microscape	$120,000.00
	Investment Revenue (300000X 40%)		$120,000.00
	Share in Revenue

Trader Investment
Balance Sheet
Current Asset
Long term Asset
Investment in Microscape (10400+120000-84)	130484
Trader investment
Income Statement (Partial)
For the Year Ended December 31, 2018
Other Income and (Expenses)
Investment income	120000