Use the data given in Exercise. Assume the investment in Microscape represents 30% ownership in Microscape’s voting stock.
In Exercise, Creative Investments completed these long-term, available-for-sale investment transactions during 2014:
Jan. 14 Purchased 500 shares of Microscape stock, paying $ 54 per share. The investment represents 2% ownership in Microscape’s voting stock. Creative intends to hold the investment for the indefinite future.
Aug. 22 Received a cash dividend of $ 0.30 per share on the Microscape stock.
Dec. 31 Adjusted the investment to its current market value of $ 52 per share.
31 Microscape reported net income of $ 200,000 for the year ended 2014.

1. Journalize Creative’s transactions. Explanations are not required.
2. Classify and prepare partial financial statements for Creative’s 30% Microscape investment at December 31, 2014.

  • CreatedJanuary 16, 2015
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