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On April 1, 2021, Carla Vista Company purchased 45,600 common shares in Ecotown Ltd. for $18 per share. Management has designated the investment as FVTOCI.
On April 1, 2021, Carla Vista Company purchased 45,600 common shares in Ecotown Ltd. for $18 per share. Management has designated the investment as FVTOCI. On December 5, Ecotown paid dividends of $0.10 per share and its shares were trading at $20 per share on December 31. The investment in Ecotown's common shares is sold on January 15, 2022, for $923,400. Carla Vista has a December 31 year end. Prepare the journal entry to record the sale of the investment. (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 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15 (To record sale of investment.)
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