<span>These financial organizations try so hard to capture student business because they know that when the time comes that they will decide into entering a business, they are the most valuable and efficient customers because they are still young. Credit cards that are offered to them, when used, have usually lower limits and so it is still safe.</span>
Answer:
Parent's beginning of the year Retained Earnings
Explanation:
"The equity method is an accounting technique used by a company to record the profits earned through its investment in another company. With the equity method of accounting, the investor company reports the revenue earned by the other company on its income statement, in an amount proportional to the percentage of its equity investment in the other company.
When the investor has a significant influence over the operating and financial results of the investee, it can directly affect the value of the investor's investment. The investor records its initial investment in the second company's stock as an asset at historical cost. Under the equity method, the investment's value is periodically adjusted to reflect the changes in value due to the investor's share in the company's income or losses. Adjustments are also made when dividends are paid out to shareholders."
Reference: Tuovila, Alicia. “Equity Method Definition.” Investopedia, Investopedia, 8 Oct. 2019
Answer:
<u>$289,000</u>
Explanation:
The journal entry for sale of investment for profit is:
Bank A/C Dr.
To Investments A/C
To Gain on sale of investments
(Being investments sold and profit realized being recorded)
Purchase of Investments during the year = Investments closing balance + Amount of investments sold - Investments opening balance - Gain on sale of investments
Investments purchased during the year = $1,200,000 + 80,000 - 965,000 - 26000
Investments purchased during the year = $289,000
Investments account is an asset account. A debit to such an account increases it's balance and a credit reduces it's balance.