Cassidy Concrete Corp. acquired 20% of Enda Inc's common shares on January 1, 2024, by paying...

Transcribed Image Text:

Cassidy Concrete Corp. acquired 20% of Enda Inc's common shares on January 1, 2024, by paying $6.00 million for 200,000 shares. Enda declared a $0.50-per-share cash dividend, which Cassidy received on June 30 and again on December 31. Enda reported net income of $3,360,000 for the year. At December 31, the market price of the Enda shares was $31 per share. (a) Your answer is partially correct Prepare the journal entries for Cassidy Concrete for 2024, assuming Cassidy cannot exercise significant influence over Enda and uses the fair value through profit or loss model. Hint. The investment should be treated as a long-term investment that is not held for trading. (List all debit entries before credit entries. 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) Date Jan. 1 Account Titles and Explanation Debit 6000000 Credit Cash June 30 Cash Dividend Income Dec 31 Cash Dividend Income (To record dividend received) Dec. 31 Cash Cash (To record change in fair value of investment) 100000 100000 168000 600 10 16 Cassidy Concrete Corp. acquired 20% of Enda Inc's common shares on January 1, 2024, by paying $6.00 million for 200,000 shares. Enda declared a $0.50-per-share cash dividend, which Cassidy received on June 30 and again on December 31. Enda reported net income of $3,360,000 for the year. At December 31, the market price of the Enda shares was $31 per share. (a) Your answer is partially correct Prepare the journal entries for Cassidy Concrete for 2024, assuming Cassidy cannot exercise significant influence over Enda and uses the fair value through profit or loss model. Hint. The investment should be treated as a long-term investment that is not held for trading. (List all debit entries before credit entries. 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) Date Jan. 1 Account Titles and Explanation Debit 6000000 Credit Cash June 30 Cash Dividend Income Dec 31 Cash Dividend Income (To record dividend received) Dec. 31 Cash Cash (To record change in fair value of investment) 100000 100000 168000 600 10 16