Two of the journal entries prepared by an investor in an unincorporated joint venture under the proportionate share method of accounting are identical to journal entries prepared under the equity method of accounting.

Question

Quizplus · Accepted Answer

Under both the proportionate share method and the equity method, the investor recognizes their share of the joint venture's income and any dividends received from the joint venture in a similar manner, leading to at least two types of journal entries that are identical between the methods.

Two of the Journal Entries Prepared by an Investor in an Unincorporated