ABC Financial Services Inc. invested $15,000 to acquire 3,750 shares of EDFInvestments Inc. on March 15, 2012. This investment represents less thun 20% of the investee's voting stock. On May 7, 2016, ABC Financial Services Inc. sells 1,950 shares for $11,050. Which of the following will be the correct journal entry for this transaction?Introduction to Fir29:01 Finlnswer SheetA. Cash$ 11,050 Loss on Disposal$ 3,950Investments$ 15,000B. Cash$ 11,050Investment$ 7,800Gain on Disposal$ 3,250C. Cash$ 11,050Investments$ 11,050D. Gain on Disposal$ 11,050lInvestments$ 11,050
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- On April 1, 2024, Sunland Company purchased 44,800 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles く Debit CreditOn April 1, 2024, Sheridan Company purchased 34,400 common shares in Ecotown Ltd. for $18 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $20 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries) Date 10 Account Titles Debit CreditOn April 1, 2024, Sandhill Company purchased 46,400 common shares in Ecotown Ltd. for $13 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $15 per share on December 31. Prepare the required entries to record the purchase, dividends, and year-end adjusting journal entry (if any) for this investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Save for Later Account Titles Debit Credit Attempts: 0 of 1 used Submit Answer
- On August 1, 2015, McLellan Ltd. purchased 1,000 Data-wave common shares for $45,000 cash with the intention of trading the shares and using the fair value through profit or loss model. On December 31, 2015, McLellan s year end, the shares fair value was $49,000. Prepare the journal entry to record (a) The purchase of this investment on August 1, and (b) Any adjusting journal entry required at December 31? Please provide explanation to the recorded entries through narration.Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction costs of the purchase were $400. At 31 December 20x0, the shares are trading at $5.0 each. a. What is the carrying balance of this financial asset shown on statement of financial position as at 31 December 20X0? b. What is the gain to be recognised on these shares for the year ended 31 December 20X0? Where to record this gain in statement of profit or loss and other comprehensive? c. Assume that these shares were held for sales, what is the initial measurement of this financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or loss and other comprehensive income at the year ended 20X0?On June 30, 2015, MetroMedia, Inc., purchased 10,000 shares of Mitek stock for $20 per share.The following information pertains to the fair value of Mitek stock:Per Share12/31/2015 $2412/31/2016 31Required:Assume that management considers the stock to be available-for-sale securities. Prepare the journal entries required on each date given.
- Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,000 $8.00 $7.10 FDY Ltd. 3,000 6.90 6.95 CTN Corporation 4,600 5.00 5.80 On January 15, 2021, Ivanhoe sold the shares in CTN Corporation for $6.25 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…As of December 31, 2014, Kaman Corp. held two Equity Securities. Information regarding these securities is as follows: Secuirty Date Acquired Acquisition Cost Market Value (12/31/14) A $35,000 $88,000 B Based on the information given, create the journal entry that would be recorded on 12/31/14. For each line item of the journal entry write whether it is a Dr. or Cr., the account name, and amount. 1/16/14 2/22/14 $36,000 $79,000Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…
- On March 22, 2023, Amelia, Inc., purchased 500 shares of its own common stock in the market for $21 per share. On May 19, 2023, the company sold 300 of these shares in the open market at a price of $24 per share. Required: Use the horizontal model (or write the entry) to show the effects on Amelia, Inc.'s financial statements of: a). The purchase of the treasury stock on March 22, 2023. The sale of the treasury stock on May 19, 2023. b).Benevolent Company had the following transactions: 2020 Aug. 1Purchased 1,000 shares of Star Company for P60,000. Oct. 1Purchased 8,000 shares of Star Company for P560,000. 2021 July 1Purchased 6,000 shares of Star Company for P480,000. Oct. 1Sold 5,000 shares of Star Company for P500,000. Use FIFO. 2022 Feb. 1Received 50% share dividend.Nov. 1Received share rights to purchase one new share at P60 for every 5rights tendered. On this date, the right is quoted at P10. Dec. 1Sold all share rights at P15 per right. Required:a.Prepare journal entries to record the transactions using average and FIFO. The share rights are accounted forseparatelyOn April 10, 2019, Amelia Inc. purchased 450 shares of its own common stock in the market for $22 per share. On September 28, 2019, the company sold 270 of these shares in the open market at a price of $25 per share. Required: a. Use the horizontal model to show the effects on Amelia Inc's financial statements of the purchase of the treasury stock on April 10, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses b. Use the horizontal model to show the effects on Amelia Inc's financial statements of the sale of the treasury stock on September 28, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net Income Revenues Expenses +