Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could you please prepare entries? 2020: Nov 03 Purchased ordinary shares of 3 companies, each investment representing less than a 20% interest. These shares are
Could you please prepare entries?
2020: Nov 03 Purchased ordinary shares of 3 companies, each investment representing less than a 20% interest. These shares are held for trading. X $259,700 ; Y $317,500 ; Z $141,350 plus $11,450 brokerage commissions. Received a cash dividend of $4,200 on the investment in the ordinary shares of Y. All three of the investee companies reported net income for the year, but only Y declared and paid a dividend. Dec 06 Dec 31 Fair value of the investments: X $275,000; Y $304,000; Z $104,000. 2021: Jan 23 Sold all of the X ordinary shares for $300,000 less $12,780 brokerage commissions. Purchased 20,000 ordinary shares of W at $12.75 per share plus $1,850 brokerage commissions. Feb 10 Dec 31 Fair value of the investments: W $278,350 ; Y $362,550 ; Z $139,050Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started