Athens Company completed these long-term equity investment transactions during 2018:
2018
Apr 10 ………… Purchased 400 shares of Technomite stock (less than 10% of Technomite’s outstanding stock), paying $18 per share. Athens Company intends to hold the investment indefinitely.
Jul 22 ………….. Received a cash of $1.21 per share on the Technomite stock.
Dec 31 ………… Adjusted the Technomite investment to its current market value of $4,900.
1. Journalize Athens Company’s investment transactions. Explanations are not required.
2. Assume the Technomite stock is Athens Company’s only investment. Explain how these transactions will be reflected on Athens Company’s income statement for the year ended December 31, 2018.
3. Show how to report the investment on Athens Company’s at December 31, 2018. Ignore income taxes.
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