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Prepare journal entries for investments

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Prepare journal entries for investments using the fair value and the equity method. How does it relate to the practice of accounting and its uses in business?

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Prepare journal entries for investments using the fair value and the equity method. How does it relate to the practice of accounting and its uses in business?

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Since there are no actual numbers with this question, I will just pick random amounts.

If we were to record under the equity method, it would look like this:

Securities 10,000
Cash 10,000

The dividends and/or interest received would be recorded as follows:

Cash 1,000
Dividend revenue 1,000 ...

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