Required:
Prepare Dated Journal Entries for Ocean Enterprises for 2020

question 32

Essay

Required:
Prepare dated journal entries for Ocean Enterprises for 2020 to account for its investment in Zebrafish and any related income therefrom.
$\begin{array}{|l|r|}\hline \text { At January 1, 2019-purchase of } 15 \% & \$ 150,000 \\\hline \text { LO19 revaluation } & \underline{15,000} \\\hline \text { Balance-Dec. } 31,2019(15 \%) & \$ 165,000 \\\hline \text { Additional purchase (10\%)-January 1, 2020 } & \underline{110,00} \\\hline \text { Balance (25\%) } & \$ 275,000 \\\hline \text { July 1, 2020-Sale of 12,500shares } & \underline{137,500} \\\hline \text { Balance }(12.5 \%) & 137,500 \\\hline 2020 \text { revaluation }(12,500 \times \$ 12.50)-137,500 & 18,750 \\\hline \text { Investment account balance-Dec. } 31,2020 & \$ 156,250 \\\hline\end{array}$

Interpret the impact of inventory management on cash flows.

Analyze accounts payable and receivable management in the context of cash flow.

Understand the role of depreciation in financial planning and its effect on net income.

Analyze the impact of operating expenses on profitability.

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Definitions:

Glacial Periods

Times during Earth's history when large ice sheets covered significant portions of the planet's surface, significantly impacting climate and the environment.

Solar Output

The total amount of energy that the sun emits over a specific time period.

Polar Ice

Frozen water in the polar regions of Earth, including ice caps, glaciers, and sea ice, which plays a crucial role in the global climate system.

Negative Feedback Loop

A process in a system where the output may feed back into the system to counterbalance changes and maintain stability within the system.