How does Investment on subsidiary decrease (equity method) affect the FS

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October 19, 2014 at 8:34 pm #189437

tingting8429
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Cash XXXX

Investment in company A XXXX

Investment in company A XXXX

Investment income—company A XXXX

How does these journal entries affect the financial statement?

equity increase or decrease? NI increase or decrease?

Please…

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October 19, 2014 at 8:39 pm #613877

Anonymous
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I suggest looking at T accounts and the normal balances of equity and income accounts…

October 19, 2014 at 9:00 pm #613878

Anonymous
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See post #5: https://www.another71.com/cpa-exam-forum/topic/please-help-allowance-for-doubtful-account-and-investment-on-subsidiary-account
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