Cosmos Corporation had the following long-term investment transactions.Jan 2Purchased 5,000 shares of Visual, Inc. for $42 per share. These shares represent a 35% ownership of Visual. Oct 15Received Visual, Inc. cash dividend of $2 per share.Dec 31Visual reported a net loss of $66,000 for the year.Prepare the journal entries Cosmos Corporation should record for these transactions and events.
What will be an ideal response?
| Jan | 2 | Equity Method Investments | 210,000 | ? |
| ? | ? | Cash (5,000 * $42) | ? | 210,000 |
| Oct | 15 | Cash (5,000 * $2) | 10,000 | ? |
| ? | ? | Equity Method Investments | ? | 10,000 |
| ? | ? | Equity Method Investments | ? | 10,000 |
| Dec. | 31 | Loss from Equity Method Investments | 23,100 | ? |
| ? | ? | Equity Method Investments ($66,000 * 35%) | ? | 23,100 |
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