TR11-6 Cost and FVTPL; Shares (LO 11-4) On 30 June 20x2, King Ltd. purchased 21,000 shares of Prince Inc. for $58,800 plus $2,100 in commission. In 20X2, the company received a $1,050 of dividends, and the shares had a fair value of $67,200 at the end of the year. In 20X3, there were no dividends and the shares were sold for $79,800 less a $840 commission. Required: 1. Prepare journal entries for 20x2 and 20X3: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Assuming King reports under ASPE and has chosen the cost method. Journal entry worksheet 2 3 > Record the investment made in Prince Inc. Cash Commission expense Note: Enter debit Dividend income Investment in FVTPL securities: Prince Inc Transaction Debit Credit 20X2 Investment in securities: Prince Ltd Investment revenue: Gain on sale Record entry Clear entry View general journal Journal entry worksheet Record the Purchase of Investment. Commission expense Note: Enter debit Dividend income Transaction Investment in FVTPL securities: Prince Ltd Debit Credit 20X2 Investment revenue: gain on sale of investment Investment revenue: Holding gain Record entry Clear entry View general journal b. Assuming King reports under IFRS and classified the investment as fair-value-through-profit-or-loss. View transaction list Journal entry worksheet Record the Investment Revenue. Note: Enter debit Investment in FVTPL securities: Prince Ltd Transaction Investment revenue: in on sale of investment Debit Credit 20X2 Investment revenue: Holding gain Investment revenue: Holding loss Investment revenue: Loss on sale Record entry Clear entry View general journal b. Assuming King reports under IFRS and classified the investment as fair-value-through-profit-or-loss. View transaction list Journal entry worksheet 1 2 3 4 Record the sale of Investment. Accounts payable Cash Note: Enter debit Commission expense Transaction Dividend income Debit Credit 20X3 Investment in FVTPL securities: Prince Ltd Record entry Clear entry View general journal