Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Corp. acquired 6,400 shares of Mandrake Corp. on July 1, 2021 at $9 per share. There is no quoted market price for Mandrake's shares

image text in transcribed

image text in transcribed

image text in transcribed

Blue Corp. acquired 6,400 shares of Mandrake Corp. on July 1, 2021 at $9 per share. There is no quoted market price for Mandrake's shares as it is a private company. Blue reports under ASPE and has elected to account for the investment using the cost method. On September 1, Mandrake declared and paid a $0.40 per share dividend and on December 31, Blue sells the shares at $8 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit December 31 List of Accounts Accumulated Other Comprehensive Income Allowance for Investment Impairment Bond Investment at Amortized Cost Cash Dividend Receivable Dividend Revenue FV-NI Investments FV-OCI Investments Gain on Sale of Investments GST Receivable Interest Expense Interest Income Interest Payable Interest Receivable Investment in Associate Investment Income or Loss Loss on Discontinued Operations Loss on Disposal of Investments - Cost/Amortized Cost Loss on Impairment No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Unrealized Gain or Loss - OCI

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Development Of The American Public Accounting Profession

Authors: T.A. Lee

1st Edition

0415403944, 9780415403948

More Books

Students also viewed these Accounting questions