On aug 1, 2022 Lid Ltd purchased 1100 Agnus common shares for 44300 cash, with intetion of trading shares and using fair value through profit or loss model.on dec 1,2022 Lid's year end, the fair value of the Agnus share was 48600. Lid sol dthe shares on Feb 1, 203 for 46400. Record journal enries required for the above transaction
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On aug 1, 2022 Lid Ltd purchased 1100 Agnus common shares for 44300 cash, with intetion of trading shares and using fair value through profit or loss model.on dec 1,2022 Lid's year end, the fair value of the Agnus share was 48600. Lid sol dthe shares on Feb 1, 203 for 46400.
Record journal enries required for the above transaction
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- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossOn 1 July 2023, Supplyco Ltd provides Grove Ltd with some inventory, which has a fair value of $200 000. In exchange for the inventory, Grove Ltd provides Supplyco Ltd with 20 000 shares in Grove Ltd. REQUIRED Provide the accounting entry to account for the above equity-settled share-based transaction.Coporation completed the following transactions realting to investment in other company ordinary shares which were acuired for trdaing purposes2019 Purchased 1000 shares at 150 per share plus transaction costs of 3750 At year end other company ordinary share had a fair value of 180 per share 2020 sold 500 of other company ordinary shares for a total of 94000 at year end FV of each share was 192 On date of purchase of the invcestmebnt, the amount debited to asset account is?the total net amunt reported in 2019 profit or loss is? ]the current assets at dec 31 20919 will report the value investment at? The total amount reported in 2020 profit and loss is? the total amount reported in 2020 OCI is?
- On 1 July 2021, Mel Ltd took control of the assets and liabilities of Syd Ltd. At this date the statement of financial position of Syd Ltd was as follows: Required Prepare the journal entries in the records of Mel Ltd at 1 July 2021 in each of the following situations, assuming the costs of issuing the shares by Mel Ltd cost $1600. Mel Ltd issued 80 000 shares having a fair value of $2.40 per share in exchange for the net assets of Syd Ltd Mel Ltd issued 80 000 shares having a fair value of $2.00 per share in exchange for the net assets of Syd Ltd. Mel Ltd acquired the shares of Syd Ltd. The agreement was that Mel Ltd would pay the shareholders of Syd Ltd one share in Mel Ltd for every two shares held in Syd Ltd plus $1 in cash for each share held in Syd Ltd. Shares in Mel Ltd have a fair value of $1.80 per share.SUKON Company acquired equity securities at the beginning of 2020. SUKON Company provided you the following information: Security. No. of shares Acquisition Cost AKO Co. shares 100,000 shares P5,250,000 AKO shares were acquired and were designated as financial asset at fair value through OCI. The shares were acquired at P52.50 per share which included a P2.50 per share transaction cost. Half of the AKO shares were sold at P58 per share on July 1, 2021. Fair value, Fair value, Dec. 31, 2020 Dec. 31, 2021 P55/share P62/share How much is the carrying value of the Investment on December 31, 2021? O 2,900,000 O 2,500,000 O 3,100,000 O 2,750,000Dwani Ltd acquired all the issued shares (cum div.) of Power Ltd for $653 000 on 1 January 2022. At that date, the equity of Power Ltd was recorded as follows. Share capital $ 400 000 General reserve 88 000 Retained earnings 90 000 On 1 January 2022, the records of Power Ltd showed that the company had previously recorded a goodwill at cost of $15 000. Further, Power Ltd had a dividend payable of $25 000, the dividend to be paid in March 2022. All other assets and liabilities were carried at amounts equal to their fair values at the acquisition date, except some inventories recorded at $20 000 below their fair value. Also, Dwani ltd identified at the acquisition date a patent with a fair value of $45 000 that Power Ltd has not recorded in its own accounts. Required Prepare the acquisition analysis on 1 January 2022. Prepare the consolidation worksheet entries for Dwani Ltd’s group on 1 January 2022.…
- On January 3, 2018,A Corp. purchased 25% of the voting common stock or C0.paying S2,500,000. A Cop. decided to use the equity method to account for this investment. Atthe ime of the investment, G Co, total stockholders' equity was S8,000,000. ACOIp. gathered the following intormation about G Co. assets and liabiiines Fair Value $500,000 1.300,0 00 0,000 Book Value S400,000 1.000,000 Buildings (10-year life) Equipment (5-year lite) Franchises (8-year life) For all other assets and liabilities, book value and fair vaue were equal. Any excess of cost over tair value was attributed to goodwill, which has not been impaired.On 1 January 2018, Chelsea Ltd acquired 75% of the shares in Orlando Ltd at N$126 000. At that date, the balance on Orlando Ltd’s retained earnings account amounted to N$36 000. The share capital amounted to N$120 000 and no shares have been issued since that date.The following are the condensed financial statements of Chelsea Ltd and subsidiary OrlandoLtd at 31 December 2020.STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER 2020Chelsea LtdN$Orlando LtdN$ASSETSProperty, plant and equipment 168 000 105 000Investment in Orlando Ltd at fair value 180 000 -Trade receivables 87 000 156 000Total assets 435 000 261 000EQUITY AND LIABILITIESShare capital 240 000 120 000Mark-to-market reserve 54 000 -Retained earnings 54 000 54 000Long-term borrowings 30 000 6 000Trade and other payables 57 000 81 000Total equity and liabilities 435 000 261 000EXTRACT FROM THE STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020Chelsea LTDN$Orlando LTDN$Profit 55 500…On January 1, 2019, B Company purchased 50000 shares of another entity for P 3 600 000. OnOctober 1, 2019, the entity receives 50 000 stockrights from the investee. Each right entitled theshareholder to acquire one share for P 85.On November 30, 2019, Investee Company paiddividends of P20 per share.The market price of the investee’s share was P 100immediately before the rights were issued and P90immediately after the rights were issued.On December 1, 2019, the entity exercised all stockrights. On December 31, 2019, the entity sold 25 000shares at P 90 per share. The stock rights are notaccounted for separately. How much dividend was received by B? What is the gain on sale of investment thatshould be recognized in 2019 using the FIFOApproach? What is the gain on sale of investment thatshould be recognized in 2019 using theAverage Approach? How did you solve this? Thanks!
- On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by cheque. At the time of purchase, Shresta Inc’s profit and loss account balance were £1,000 and share premium was £500. The following are the statement of financial positions of Harleen Inc and Shresta Inc: Statement of Financial Position as at 31 December 2020 Harleen Inc Shresta Inc Non-Current Assets £ £ £ £ Buildings 10 000 4000 Motor Vehicles 7000 900 Investment in Shresta Inc 5300 22300 4900 Current Assets Inventory 1200 800 Trade Receivables 1500 260 Bank 300 390 Cash 50 10 3050 1460 Current Liabilities Trade Payables 5600 800 (2550) 660 19750 5560 Non-Current Liabilities Loans 6000…1. On January 3, 2020, Castle Corporation purchased the following equity securities as an investment: Number of Cost of Total Company Shares Share $20 Cost $ 8,000 24,000 600 ,7ב 400 2,000 800 B 12 22 These securities are classified as available for sale. Required: a. Prepare the journal entry to record the acquisition of the stock. b. On June 30, 2020, C Company paid dividends of $3.00 per share. Prepare the journal entry that would be used by Castle to record the dividend receipt. c. On December 31, 2020, the market values per share were: Company Market Value A $22 B 12 20 Prepare any journal entry or entries necessary to record these changes in market value. d. On March 14, 2021, Castle sold 800 shares of C Company for $18 per share. Prepare the journal entry to record the sale.Gold Ltd purchased Silver on 1 June 2023, acquiring all of the assets and liabilities. The price agreed on was $60, 000, payable $20, 000 in cash and the balance by the issue to Silver Ltd of 16, 000 fully paid shares in Gold Ltd, these shares having a fair value of $2.50 per share. The balances of the two companies accounts as at 1 June 2023 were as follows: Gold Ltd Silver LtdCash 30,000 -Accounts receivable 8,000 20,000Inventory 14,000 26,000Plant (net) 50,000 30,000Government bonds 12,000 -Goodwill - 10,000Total assets 114,000 86,000Accounts payable 2,000 20,000Retained earnings 12,000 (24,000)Share capital 100,000 90,000Total liabilities and equity 114,000 86,000 All the identifiable net assets of Silver Ltd were recorded by Silver Ltd at fair value except for the inventories, which were considered to be worth $28,000. The plant had an expected remaining life of 5 years. Gold Ltd incurred incidental costs of $500 in relation to the acquisition. Costs of issuing shares in Gold Ltd…