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On June 1, 2020, Smith Inc. acquired 1,500 shares of Weston Ltd. for $100,000. This investment represents a 12% interest in Weston Ltd. and Smith

On June 1, 2020, Smith Inc. acquired 1,500 shares of Weston Ltd. for $100,000. This investment represents a 12% interest in Weston Ltd. and Smith Inc. has significant influence.

On December 31, 2020, Weston Ltd. paid a $50,000 dividend to its shareholders. At June 30, 2021, Weston Ltd.'s shares were valued at $40 per share and Weston Ltd. reported net income of $50,000 for the year.

On August 15, 2021, Smith Inc. sold the shares for $50,000. Both Smith Inc. and Weston Ltd. have June 30, 2021, year-ends.

Required: Prepare dated journal entries for the investment on the acquiring company's books from acquisition to disposal.

Ignore income taxes. Journal entry descriptions are optional.

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