Assignment 1) Using the General Journal tab, click Add Transaction to journalize
ID: 2522529 • Letter: A
Question
Assignment 1) Using the General Journal tab, click Add Transaction to journalize each transaction. Click Post Transaction once you complete the entry, then repeat these steps for each transaction 2) Click the Reports tab and review the results of recording these transactions on the General Ledger 3) Click Submit Work when complete Background: Water all Source Co. uses excess cash to invest in the equity securities of other companies. The Transactions section below lists the investment transactions of Waterfall Source Co. during 2018 Transactions: 01/10/2018 Paid $400,000 for the 20% of the outstanding voting stock of Evan Corporation, waterfall now has significant influence over Evan 03/03/2018 Purchased 4,000 shares of Lili Software common stock for $11 per share. Waterfall considers this a long-term equity investment, but 05/15/2018 Received a cash dividend of $.61 per share on the Lili investment Corporation has only purchased 7% of the outstanding stock of Lili, so it does not have significant influence SAVE WORK RESET RESULTS SUBMIT WOR BuSINESS REPORTS January 1, 2018-December 31, 2018 COMPANY INFORMATION CHART OF GENERAL JOURNAL Date Accounts Debit Credit No transactions in Journal ADD TRANSACTION EDIT CHECKED TRANSACTI ON DELETE CHECKED TRAExplanation / Answer
Date Account Debit credit 01/10/2018 Equity investment /Investment in evan corporation 400000 cash 400000 03/03/2018 Long term equity investment 44000 cash 44000 [being equity investment made 4000*11] 05/15/2018 cash 2440 Dividend income 2440 [being dividend received on equity investment .61*4000] 12/15/2018 cash 70000 Investment in evan corporation 70000 12/31/2018 Investment in evan corporation 60000 share in net income of evan corporation 60000 [being share in net income 300000*.20] 12/31/2018 No entry is required for long term investment (it is reported at cost unless permanent dimunition]