On March 1, 2005, both Anson Company and Beale Company invested $50,000 for a 50% interest in AB Company, an unincorporated joint venture. For the fiscal year ended February 28, 2006, AB Company had a net income of $40,000 (revenue of $250,000 less expenses of $210,000), and its balance sheet on that date had total assets of $260,000 and total liabilities of $120,000.
a. Prepare journal entries for Anson Company on March 1, 2005, and February 28, 2006, to account for its investment in AB Company under the equity method of accounting.
b. Prepare an additional journal entry for Anson Company on February 28, 2006, to account for its investment in AB Company under the proportionate share method of accounting.

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The Answer of On March 1, 2005, both Anson Company and Beale Company invested $50,000 for a 50% interest in AB Company, an unincorporated joint venture. For the fiscal year ended February 28, 2006, AB Company had a net income of $40,000 (revenue of $250,000 less expenses of $210,000), and its balance sheet on that date had total assets of $260,000 and total liabilities of $120,000.
a. Prepare journal entries for Anson Company on March 1, 2005, and February 28, 2006, to account for its investment in AB Company under the equity method of accounting.
b. Prepare an additional journal entry for Anson Company on February 28, 2006, to account for its investment in AB Company under the proportionate share method of accounting.

On March 1, 2005, Both Anson Company and Beale Company