On January 1, 2022, Meredith plc purchased 25% of the ordinary shares of Pirates Company for 200,000.

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On January 1, 2022, Meredith plc purchased 25% of the ordinary shares of Pirates Company for £200,000. During the year, Pirates earned net income of £80,000 and paid dividends of £20,000.

Instructions

Prepare the entries for Meredith to record the purchase and any additional entries related to this investment in Pirates Company in 2022.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Aug 03, 2021 03:17 AM

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On January 1, 2022, Meredith plc purchased 25% of the ordinary shares of Pirates Company for 200,000.

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Purchase of shares Debit Investment in Pirates Company Asset 200000 Credit Cash ...View the full answer

Intermediate Accounting IFRS

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