Question $18$ of $18$

$-110-=,$vdots

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Novak Ltd$.$ is a Canadian publicly$-$traded business with a December $31$ fiscal year end. In order to get a better return on some of its excess cash. Novak purchased $120$ common shares of AFS Corporation on July $1,2023$ at a price of $$5$ per share. Due to the nature of the investment, Novak's management is accounting for the equity investment using the fair$-$value through other comprehensive income $($FV$-$OCI$)$ without recycling to net income. On August $1,2023,$ AFS declared dividends of $$\frac{2}{?}$ share, and paid those dividends on August $20,2023.$ On December $31,2023,$ shares in AFS were trading at $$7$ per share. On September $15,2024,$ Novak sold the shares in AFS for $$8$ per share.

Prepare the journal entries required to record the above transactions on the books of Novak Ltd$.($Credit occount tiltes 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 Ofor the amounts. List all debit entries before credit entries Record Journal entrles in the order presented in the problem.$)$

SearchNovak Ltd$.$ is a Canadian publicly$-$traded business witha December $31$ fiscal year end. In order to get a better return on some of its excess cash. Novak purchased $120$ common shares of AFS Corporation on July $1,2023$ at a price of $$5$ per share. Due to the nature of the investment, Novak's management is accounting for the equity investment using the fair$-$value through other comprehensive income $($FV$-$OCI$)$ without recycling to net income. On August $1,2023,$ AFS declared dividends of $$2/$share$,$ and paid those dividends on August $20,2023.$ On December $31,2023,$ shares in AFS were trading at $$7$ per share. On September $15,2024,$ Novak sold the shares in AFS for $$8$ per share.

Prepare the journal entries required to record the above transactions on the books of Novak Ltd$.($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 O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

$$

$($To adjust to fair value on date of disposition$)$

$($To record disposal$)$

Fair Value$-$Other Comprehensive

Income $($OCI$)$ without recycling:

$($To reclassify holding gain$)$