Some of the account balances of Oriole Limited at December 31, 2022, are as follows: $8...
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Some of the account balances of Oriole Limited at December 31, 2022, are as follows: $8 Preferred shares (2,500 shares authorized, 2,500 shares issued and outstanding) Common shares (unlimited authorized, 44,000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income $480,000 560,000 109,000 796,000 23,885 The price of the company's common shares has been increasing steadily on the market; it was $23 on January 1, 2023, and advanced to $26 by July 1 and to $29 at the end of 2023. The preferred shares are not openly traded but were appraised at $122 per share during 2023. Oriole follows IFRS and had net income of $148,000 during 2023. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. (a1) The company declared a property dividend on April 1. Each common shareholder was to receive one share of Pharoah Corp. for every 11 shares outstanding. Oriole had 8,500 shares of Pharoah (2% of the outstanding shares), which it had purchased in 2018 for $69,530. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Pharoah shares was $18 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Pharoah shares was $19.50. The Pharoah shares remained at a fair value of $19.50 until year end. Prepare the journal entries. (List all debit entries before credit entries. 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. Round answers to O decimal places, e.g. 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem statement.) Some of the account balances of Oriole Limited at December 31, 2022, are as follows: $8 Preferred shares (2,500 shares authorized, 2,500 shares issued and outstanding) Common shares (unlimited authorized, 44,000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income $480,000 560,000 109,000 796,000 23,885 The price of the company's common shares has been increasing steadily on the market; it was $23 on January 1, 2023, and advanced to $26 by July 1 and to $29 at the end of 2023. The preferred shares are not openly traded but were appraised at $122 per share during 2023. Oriole follows IFRS and had net income of $148,000 during 2023. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. (a1) The company declared a property dividend on April 1. Each common shareholder was to receive one share of Pharoah Corp. for every 11 shares outstanding. Oriole had 8,500 shares of Pharoah (2% of the outstanding shares), which it had purchased in 2018 for $69,530. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Pharoah shares was $18 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Pharoah shares was $19.50. The Pharoah shares remained at a fair value of $19.50 until year end. Prepare the journal entries. (List all debit entries before credit entries. 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. Round answers to O decimal places, e.g. 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem statement.)
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Answer Heres the journal entries To record the property ... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
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