Check my work On December 12, 2018, an equity investment costing $98,000 was sol

Question

Check my work On December 12, 2018, an equity investment costing $98,000 was sold for $136,000. The investment was carried in the balance sheet at $93,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. points Required: 1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) eBook Hint View transaction list Print References Journal entry worksheet Prepare the journal entry to correct the error assuming it is discovered before the books are adjusted or closed in 2018. Note: Enter debits before credits. Event General Journal Debit Credit

Explanation / Answer

Correction entry before books are closed for 2018:

Correction entry after books are closed for 2018:

Investment A/c Dr 43000 Gain on sale of Investment A/c Cr 43000

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