P-0A-06 Name:

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General Journal
Date Description Debit Credit

1. Marsh Service Corporation

a.

To record purchase of 100,000 shares of Marsh Service

Corporation; 6.7 percent ownership in Marsh indicates
cost-adjusted-to-market method should be used.

b.

To record receipt of $0.80 per share dividend from

Marsh Service Corporation

c.

Crescent Drilling Company

a.

To record purchase of 2,000,000 shares (20 percent)

of Crescent Drilling Company; seat on board of directors
indicates significant influence and use of equity method

b.

To record receipt of $0.40 per share dividend from

Crescent Drilling Company

c.

To record recognition of 20 percent ($0.80 per share) of

Crescent Drilling Company's income under the equity method

Logan Oil Field Supplies Company

a.

To record purchase of 1,000,000 shares (20 percent) of

Logan Oil Field Supplies Company. No seat on board of directors
indicates lack of significant influence; therefore, cost-adjusted-to-market
method should be used.

b.

To record Receipt of $0.80 per share dividend from

Logan Oil Field Supplies Company

c.
2.

To record the adjustment to reduce investments to market

3.

To record sale of 1,000,000 shares in Logan Oil Field Supplies Company

for $6 per share; original purchase price was $12 per share

4.

To record the year-end adjustment to Allowance to Adjust

Long-Term Investments to Market because market now exceeds
cost by $2,400,000