Question
RiverbedLtd. 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
RiverbedLtd. 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,Riverbedpurchased130common shares of AFS Corporation on July 1, 2020 at a price of $6per share.Due to the nature of the investmentRiverbed's management is accounting for the equityinvestment using the fair-value through other comprehensive income (FV-OCI) without recyclingto net income. On August 1, 2020, AFS declared dividends of $1/share, and paid those dividends on August 20, 2020. On December 31, 2020, shares in AFS were trading at $8per share. On September 15, 2021,Riverbedsold the shares in AFS for $9per share.
Prepare the journal entries required to record the above transactions on the books ofRiverbedLtd.(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 0 for the amounts. Record journal entries in the order presented in the problem.)
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