On January 1, 2017, Sunshine Ltd. acquired 30% of the outstanding ordinary shares of Moonbeam Inc. for
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Required:
a. Prepare Sunshine Ltd.s journal entries related to its investment in Moonbeam Inc. for the years ending December 31, 2017, and December 31, 2018, including the journal entry to record the acquisition.
b. Determine the balance in the investment account as at December 31, 2018.
Transcribed Image Text:
Year ended Dec. 31, 2017 Moonbeam Inc. Net income Dividends declared and paid Market value of investment Year ended Dec. 31, 2018 ($ 80,000) $300,000 50,000 370,000 30,000 320,000
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a Journal entries 2017 DR Investment in associate Moonbeam 270000 CR Cas...View the full answer
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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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