Your Ask Joey ™ Answer

What is the journal entry to record net income from an investment under the equity method?

Under the equity method, net income will increase the investment amoun, while net losses will decrease the investment amount.

For example, if the company’s share of net income is $50,000, then the company would debit the investment asset account for $50,000 and record income investments in the income statement.

Back To All Questions

You might also be interested in...