The beginning balance sheet of Desk Source Co. included an $850,000 investment in Parson stock (20% ownership).

Question:

The beginning of Desk Source Co. included an $850,000 investment in Parson stock (20% ownership). During the year, Desk Source completed the following investment transactions:
Mar. 3 Purchased 9,000 shares at $9 per share of Andy Software as a long-term, available-for-sale investment, representing 7% ownership.
May 15 Received a cash of $0.57 per share on the Andy investment.
Dec. 15 Received a cash of $80,000 from Parson investment.
31 Received Parson's annual report showing $300,000 of net income.
31 Received Andy's annual report showing $500,000 of net income for the year. 31 Parson's stock fair value at year-end was $830,000.
31 Andy's fair value at year-end was $13 per share.
Requirements
1. Journalize the transactions for the year of Desk Source.
2. Post transactions to T-accounts to determine the December 31, 2016, balances related to the investment and investment income accounts.
3. Prepare Desk Source’s partial at December 31, 2016, from your answers in Requirement 2. Common Stock
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