...
The two lots are updated pro-rata to reflect the following balances. The position level stores the total balances as well.
Cash. $6,250 for LOT1, $3,750 for LOT2
Investment Income. $1,875 for LOT1, $1,125 for LOT2
Finally, the ledger entries for this transaction follow. Accounts added to support the use of the equity method of accounting appear in yellow.
Account | Account | Debit | Credit |
|---|---|---|---|
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 |