Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please use list of right sccounts indicated in picture LUTNL Autemptin Progress On April 1, 2021, Cullumber Company purchased 31,200 common shares in Ecotown Ltd.

please use list of right sccounts indicated in picture
image text in transcribed
image text in transcribed
LUTNL Autemptin Progress On April 1, 2021, Cullumber Company purchased 31,200 common shares in Ecotown Ltd. for $13 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 $15 per share on December 31. The investment in Ecotown's common shares is sold on January 15, 2022 for $475,800. Cullumber 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 Debit Credit Date Account Titles and Explanation Jan. 15 (To record sale of investment) Current Attempt in Progress On April 1, 2021. Cullumber Company purchased 31.200 common shares in Ecotown Ltd. for 513 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 $15 per share on December 31. The investment in Ecotown's common shares is sold on January 15, 2022, for $475,800. Collumber 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) Credit Date Account Titles and Explanation Debit Jan. 15 Dividend Revenue Interest Revenue No Entry Investments at FVTPL Investments at FVTOCI Interest Receivable Interest Expense Investment in Associate Cash OCH Gain or Loss on Sale of investments Torthaak and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Writing A For Accountants

Authors: Claire B. May, Gordon S. May

9th Edition

0132567245, 9780132567244

More Books

Students also viewed these Accounting questions

Question

How is an employees net income computed?

Answered: 1 week ago

Question

Understand the basic theories and concepts of OD

Answered: 1 week ago