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I'm looking forassisting with the following question. It's from intermediate accounting Canadian Edition. I've include the list of account on the second sheet/ *Exercise 9-25
I'm looking forassisting with the following question. It's from intermediate accounting Canadian Edition.
I've include the list of account on the second sheet/
*Exercise 9-25 On January 3, 2017, Martinez Limited purchased 3,500 (35%) of the common shares of Sonja Corp. for $461,950. The following information is provided about the identifiable assets and liabilities of Sonja at the date of acquisition: Carrying Amount Assets not subject to $495,000 Fair Value $495,000 Assets subject to dep 772,000 842,000 Total identifiable asse 1,267,000 1,337,000 110,000 110,000 Liabilities During 2017, Sonja reported the following information on its statement of comprehensive income: Income before discon $222,000 Discontinued operatio (74,800 ) Net income and comp 147,200 Dividends declared a 113,000 Assume that the 35% interest is sufficient to make Sonja an associate of Martinez, and that Martinez is required to apply IFRS for its financial reporting. The fair value of Sonja's shares at December 31, 2017, is $151 per share. Warning Don't show me this message again for the assignme nt Ok Cancel Prepare the journal entry to record Martinez's purchase of the Sonja shares on January 3, 2017. (Hint: Any unexplained payment represents unrecognized goodwill of Sonja.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanat ion Debit Credit Jan. 3, 2017 Warning Don't show me this message again for the assignme nt Ok Cancel Prepare all necessary journal entries associated with Martinez's investment in Sonja for 2017. Depreciable assets are depreciated on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanat ion (To record the dividend received from investme nts) Debit Credit (To record investme nt income for the year) (To record amortizati on of depreciab le assets) Warning Don't show me this message again for the assignme nt Ok Cancel Prepare the journal entry if you were informed that Martinez's long-term business prospects had deteriorated and that the most Martinez could expect to recover in the future or to sell its investment in Sonja for at December 31, 2017, is $116 per share. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Dec. 31, 2017 Account Titles and Explanat ion Debit Credit Allowance for Investment Impairment Bond Investment at Amortized Cost Bonds Investment 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 Impairment Loss on Sale of Investments No Entry Note Investment at Amortized Cost Other Investments Recovery of Loss from Impairment Retained Earnings Significant Influence Investments Unrealized Gain or LossStep by Step Solution
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