Question
On March 1, 2019, C Company bought the common shares of two companies with a 20% ownership share in each as follows: Company Name Cost
On March 1, 2019, C Company bought the common shares of two companies with a 20% ownership share in each as follows:
Company Name
Cost
company A
30000
company B
50000
Total
80000
On December 1, Company C received a dividend of $ 18,000 from its investment in the common stock of Company B, and Company A did not distribute a dividend.
As of December 31, 2019, the fair value of the available-for-sale equity securities portfolio was as follows:
Company Name
Cost
company A
24000
company B
60000
Total
84000
On January 1, 2020, C Company bought 20,000 shares of D Company at a price of $ 1 per share and paid $ 4,000 brokerage and VAT on the brokerage value of 5%.
On June 10, 2020, Company B sold all of its investment to Company A for $ 40,000.
As at December 31, 2020, the fair value of the available-for-sale equity securities portfolio was as follows:
Company Name
Cost
company B
70000
company D
20000
Total
90000
Required:
1- Recording the daily operations and the necessary settlement for the year 2019.
2- Photocopy of the company's portfolio of securities available for sale on December 31, 2019.
3- Recording the daily operations and the necessary settlement for the year 2020.
4- Photocopy of the company's portfolio of securities available for sale on December 31, 2020
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Accounting Chapters 1-13
Authors: Carl Warren
27th Edition
1337272108, 978-1337272100
