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Finally, the ledger entries for this transaction follow. Accounts added to support the use of the equity method of accounting appear in yellow.

Account 
Number

Account 
Description

Debit 
Amount

Credit 
Amount

1010000100

COST OF INVESTMENTS

0.00

7,000.00

1002000100

INVESTMENT RECEIVABLE

10,000.00

0.00

4001000108

INVESTMENT INCOME

0.00

3,000.00