For example, let us assume an investment in a sub accounted for under the equity method.  If the sub declared a net income for the financial year 201x. The JE  under the equity method will be as follows:

  Investment in sub    yy

              Equity in sub earnings    yy

The value  yy will depend on the ownership level and the net income declared by the sub.

hope this gives you an idea.

missminimac wrote: Ok, I understand that. Is Equity in Earning considered an Asset? Thx!

No. It goes to the P&L.