Silva SpA owns shares of Costa S.A. classified as a trading equity investment. At December 31, 2022,
Question:
Silva SpA owns shares of Costa S.A. classified as a trading equity investment. At December 31, 2022, the trading equity investment was carried in Silva’s accounting records at its cost of R$875,000, which equals its fair value. On September 21, 2023, when the fair value of the investment was R$1,200,000, Silva declared a property dividend whereby the Costa securities are to be distributed on October 23, 2023, to shareholders of record on October 8, 2023. Prepare all journal entries necessary on those three dates.
Step by Step Answer:
The journal entries for Silva SpA to record the property dividend of its trading equity investment i...View the full answer
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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