what would be reported on the balance sheet related to the investments in affiliates 558848

Recording Investments for Significant Influence Below are selected T accounts for Gauge Company.

Investments in Affiliates

Equity in Affiliate Earnings

1 Jan

83,619

0

1 Jan

Purchase

12,844

?

Share of
affiliate net
income

Share of affiliate net income

?

10,102

Share of affiliate dividends

2,869

31 Dec

31 Dec

89,230

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 $5,800 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 the year?

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