Silva Inc. owns shares of Costa Corporation classified as a non-trading equity investment. At December 31, 2010,

Question:

Silva Inc. owns shares of Costa Corporation classified as a non-trading equity investment. At December 31, 2010, the non-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, 2011, 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, 2011, to shareholders of record on October 8, 2011. Prepare all journal entries necessary on those three dates.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...