Question: Below are selected T-accounts for William Company. Required: Complete the following journal entries and answer the following questions: a. Purchased additional investments in affiliated companies

Below are selected T-accounts for William Company.

Required:
Complete the following journal entries and answer the following questions:
a. Purchased additional investments in affiliated companies for cash. Prepare the journal entry.
b. Received cash dividends on the investments. Prepare the journal entry.
c. At year-end, the investments in affiliates account had a fair value of $62,000; the affiliate also reported $8,120 in net income for the year. Prepare the adjusting entry.
d. What would be reported on the balance sheet related to the investments in affiliates on December 31?
e. What would be reported on the income statement for theyear?

Investments in Affiliates Equity in Affiliate Eamings 56,432 15,685 Purchase Share of affiliate net income Share of affiliate 8,564 dividends Share of affiliate net income 3,897 1231 12/31 67,450

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