Question E16.6 and E16.8 and E16.10
ins E in How F16.4 (LO2) Diana Ad had the following transactions pertaining to share investments b. Explain how dividend revenue and the gain (los) on sale should be reported in the inte E16.5 (LO2) Spring Lid. had the following transactions pertaining to investments in ordinary E16.6 (LO 2) On February 1. Minitori SpA purchased 500 ordinary shares (2 ownership of Boden Company for 30,80 per share. On March 20. Minitori sold 100 shares of Becker for 2.850. Ma received a dividend of 1.00 per share on April 25. On June 15. Minitori sold 200 shares of Becker E16.10 (LO3) At December 31, 2020, the end of its first year of operations, the trading securities for Lowashari Feb Purchased 600 ordinary shares of Ronn (25) for 6,200. July ! Received cash dividends of El per share on Ronn ordinary shares Sept. Sold 100 ordinary shares of Ronn for 4.300 Dec. Received cash dividends of l per share on Ronn ordinary shares. Instructions a. Journalize the transactions ournalis are har Jan.! Purchased 2.500 ordinary shares of Angeltide Limited (5%) for 142,100. July 1 Received a cash dividend of 2.80 per share. Dec. ! Sold 500 ordinary shares of Angeltide Limited for 31,200. Dec. 31 Received a cash dividend of 2.90 per share. Instructions Journalize the transactions walios in shares 7,310. On July 28. Minitori received a dividend of 1.25 per share. Instructions Prepare the journal entries to record the transactions described above. malie and porn E16.7 (LO2) On January 1, Vince SpA purchased a 25% equity in Morelli SpA for 180,000. At Doce the equity method ber 31, Morelli declared and paid h 36,000 cash dividend and reported net income of 160,000 Instructions a. Journalize the transactions. b. Determine the amount to be reported as an investment in Morelli at December 31. le entries ander cost and E168 (LO 2, 3) Presented below are two independent situations. methods 1. Chicory Cosmetics acquired 15% of the 200,000 ordinary shares of Racine Fashion at a local co of 13 per share on March 18, 2020. On June 30, Racine declared and paid a 60,000 dividend 0. December 31, Racine reported net income of E122,000 for the year. At December 31, the marke price of Racine Fashion was 15 per share. The shares are classified as non-trading. 2. Frank Ltd. obtained significant influence over Nowak Industries by buying 30% of Nowak's 20.000 outstanding ordinary shares at a total cost of 9 per share on January 1, 2020. On June 15. Novak declared and paid a cash dividend of 30,000. On December 31, Nowak reported a net income of 80,000 for the year Instructions Prepare all the necessary journal entries for 2020 for (a) Chicory Cosmetics and (b) Frank Lad ed the scenes of consoll E16.9 (LO 2) Edna Company purchased 70% of the outstanding ordinary shares of Damen Limited mes. Instructions a. Explain the relationship between Edna Company and Damen Limited. b. How should Edna account for its investment in Damen? c. Why is the accounting treatment described in (b) useful? usting entry to record e indicate statement Geneva AG are as follows. How How Security B Cost CHF17,500 12,500 23.000 CHF53.000 Fair Value CHF16.000 14,000 19,000 CHF49.000 Prepare the adjusting entry at December 31, 2020, to report the securities at fair value. A Show the statement of financial position and income statement presentation at December 31, 2020, Exercises Instructions to fair value. after adjustment Ferrand
