Valix Finacc vol 1 Problem 11-7

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 11-7

2008    Investment in associate                                                         5,000,000

                    Cash                                                                                                      5,000,000

            Investment in associate                                                          300,000

                    Investment income (30% x 4,000,000 x 3/12)                                            300,000

                                                                                                         

           Cash (30% x 3,000,000)                                                              900,000

                    Investment in associate                                                                          900,000     

            Investment income                                                                   50,000

                    Investment in associate (200,000 x 3/12)                                                   50,000

2009    Investment in associate                                                         1,800,000

                  Investment income (30% x 6,000,000)                                                      1,800,000

           Cash (30% x 5,000,000)                                                            1,500,000

                   Investment in associate                                                                         1,500,000

            Investment income                                                                 200,000

                   Investment in associate                                                                           200,000