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As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc.'s 20 million shares for $69
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 20% of Nursery Supplies Inc.'s 20 million shares for $69 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.50 per share. At the end of the year, the fair value of the shares is $65 million. Required: Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 2 3 4 > Record the investment in Nursery Supplies shares. Note: Enter debits before credits. Transactions General Journal Debit Credit 1Journal entry worksheet A 2 4 Record the investor's share of net income. Note: Enter debits before credits. Transactions General Journal Debit Credit 2Record the cash dividends received from Nursery Supplies shares. Note: Enter debits before credits. - -
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