Sibery Inc. uses the equity method of reporting its 40% investment in Alway Co. The balance in the Investment in Alway was $70,750 at January 1, 2012. During the next three years, Alway reported the following net earnings (losses)and dividends paid.
$$\begin{array} { | l | r | r | }
\hline & \text { Net earnings (loss) } & \text { Dividends paid } \
& \$ & \$ \
\hline 2012 & 155,600 & 140,000 \
\hline 2013 & 35,700 & 140,000 \
\hline 2014 & (123,400) & 0 \
\hline
\end{array}$$ Required:
Calculate the balance of the Investment in Alway account at December 31, 2014.

Question

Sibery Inc. uses the equity method of reporting its 40% investment in Alway Co. The balance in the Investment in Alway was $70,750 at January 1, 2012. During the next three years, Alway reported the following net earnings (losses)and dividends paid.
 $$\begin{array} { | l | r | r | } 
\hline & \text { Net earnings (loss) } & \text { Dividends paid } \
& \$ & \$ \
\hline 2012 & 155,600 & 140,000 \
\hline 2013 & 35,700 & 140,000 \
\hline 2014 & (123,400) & 0 \
\hline
\end{array}$$ Required:
Calculate the balance of the Investment in Alway account at December 31, 2014.

Quizplus · Accepted Answer

The Answer of Sibery Inc. uses the equity method of reporting its 40% investment in Alway Co. The balance in the Investment in Alway was $70,750 at January 1, 2012. During the next three years, Alway reported the following net earnings (losses)and dividends paid.
 $$\begin{array} { | l | r | r | } 
\hline & \text { Net earnings (loss) } & \text { Dividends paid } \
& \$ & \$ \
\hline 2012 & 155,600 & 140,000 \
\hline 2013 & 35,700 & 140,000 \
\hline 2014 & (123,400) & 0 \
\hline
\end{array}$$ Required:
Calculate the balance of the Investment in Alway account at December 31, 2014.

Sibery Inc Required: Calculate the Balance of the Investment in Alway Account

Sibery Inc Required:
Calculate the Balance of the Investment in Alway Account