On December 12, 2021, an equity investment costing $99,000 was sold for $138,000. The investment was carried in the balance sheet at $94,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
On December 12, 2021, an equity investment costing $99,000 was sold for $138,000. The investment was carried in the balance sheet at $94,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account. Required: 1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 12, 2021, an equity investment costing $99,000 was sold for $138,000. The investment was carried in the balance sheet at $94,000, and was accounted for under the equity method. An error was made in which the total of the sale proceeds was credited to the investment account.
Required:
1. & 2. Prepare the following journal entries (Ignore income taxes). (If no entry is required for a transaction/event, select "No
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