Answer:
Explanation:
Investments Impact in Type of activity
financial statement
1 Purchase of Mao &Co's Increase the investments Investing
bond of $ 100,000 in Balance sheet activity
Cost of bond $ 95788 Debit to the investments
account $ 95,788
Annual interest on Credit to the income account
Bond of $ 5000 - interest income
No impact of fair market value
in financial statement
2 Purchase of 6000 Debit $ 255,000 to the Investing activity
shares of Dalton ltd investment account
Receipt of dividend Credit $ 12,000 to the
dividend income account
3 Acquisition of 30% Debit $ 21,500,000 to the Investing activity
ASP's outstanding stock investment account
Receipt of dividend Credit $ 1,000,000 to the
dividend income account
