Homework Answers
Solution a:
| S. no. | Account titles | Debit | Credit |
| 01-Jan | Investment in Towne Corporation shares (15000*30%*$15) | $67,500 | |
| Cash | $67,500 | ||
| 30-Dec | Cash ($4000*30%) | $1,200 | |
| Investment in Towne Corporation shares | $1,200 | ||
| 31-Dec | Investment in Towne Corporation shares ($12000*30%) | $3,600 | |
| Investment Revenue | $3,600 |
Solution b:
| Income Statement | 2020 |
| Other Revenues and Gains: | |
| Investment revenue | $3,600 |
| Balance Sheet, Decemebr 31 | 2020 |
| Assets: | |
| Investment in Towne Corporation shares (67500+3600-1200) | $69,900 |
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