On March 1, 2018, Arbor Company invests $21,000 in Bulbs, Inc. stock. Bulbs pays Arbor...
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On March 1, 2018, Arbor Company invests $21,000 in Bulbs, Inc. stock. Bulbs pays Arbor a $200 dividend on October 1, 2018. Arbor sells the Bulbs's stock on October 31, 2018, for $21,100. Assume the investment is categorized as a short-term equity investment and Arbor Company does not have significant influence over Bulbs, Inc. Read the requirements Requirement 1. Journalize the transactions for Arbor's investment in Bulbs' stock. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Arbor's initial investment in Bulbs, Inc., stock. Date Accounts and Explanation Debit Credit Mar. 1 Next, journalize Arbor's receipt of the October 1 dividend. Date Accounts and Explanation Debit Credit Oct. 1 Now journalize Arbor's sale of the Bulbs, Inc., stock on October 31. Date Accounts and Explanation Debit Credit Oct. 31 Requirement 2. What was the net effect of the investment on Arbor's net income for the year ended December 31, 2018? Arbor's net income for the year has I bys
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