Use the data given in Exercise. Assume the investment in Microscape represents 30% ownership in Microscapes voting

Question:

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.

Requirements

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.

Financial Statements
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