On January 1, 2018, Jammin’ Company owns 40 percent (40,000 shares) of Benji, Inc., which it purchased several years ago for $364,000. Since the date of acquisition, the equity method has been properly applied, and the carrying amount of the investment account as of January 1, 2018, is $587,200. Excess patent cost amortization of $24,000 is still being recognized each year. During 2018, Benji reports net income of $684,000 and a $240,000 other comprehensive loss, both incurred uniformly throughout the year. No dividends were declared during the year. Jammin’ sold 8,000 shares of Benji on August 1, 2018, for $186,000 in cash. However, Jammin’ retains the ability to significantly influence the investee. Required: Prepare the following financial statements for Jammin in good form for the year ended 2018 using the following summarized data for 2018 that the Assistant Controller gave you: Description Amount Sales $1,700,000 Cost of Goods Sold 600,000 Other Expenses 416,000 Dividends Paid 300,000 Retained Earnings, 1/1/18 468,000 Income statement for Jammin’ Company. Please show calculations so that partial credit can be granted. Statement of comprehensive income for Jammin’ Company. Please show calculations so that partial credit can be granted. Statement of retained earnings for Jammin’ Company. Please show calculations so that partial credit can be granted.


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