On January 1, Year 1, Amco Ltd. and Newstar Inc. formed Bearcat Resources, a joint venture. Newstar
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(a) Assume that the miscellaneous assets contributed by Newstar included cash of $450,000. Also, assume that the transaction had commercial substance when Amco transferred the plant and equipment to the joint venture. Prepare Amco's Year 1 journal entries.
(b) Assume that there was no cash in the assets contributed by Newstar and that the cash received by Amco had been borrowed by Bearcat. Also, assume that the transaction did not have commercial substance when Amco transferred the plant and equipment to the joint venture. Prepare Amco's Year 1 journal entries.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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