3. Record the collection of dividends from strategic investment. June 07, 2023 4. Record the sale of
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3. Record the collection of dividends from strategic investment. June 07, 2023
4. Record the sale of equity investment. Aug 14, 2023
5. Record the purchase of 11,900 shares. Nov 28, 2023
6. Record the sale of 11,900 shares. Dec 30, 2023
7. Record the share of profits in investment in associate. Dec 31, 2023
Transcribed Image Text:
Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and Equity Investments* 11,900 Xavier Corp. common shares 2,200 Young Inc. common shares Cost $194,565 Fair Value $172,550 114,400 109, 120 139,000 Zed Corp. common shares 45,700 41,300 *The fair value adjustments were recorded on December 31, 2022. Johnson had no other debt and equity investments at December 31, 2022, other than those shown above. During 2023, Johnson engaged in the following transactions: 2023 Jan.17 Sold 1,700 common shares of Young Inc. for $81,600. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 6,900 common shares of Allen Corp. for $414,000. The shares represent a 30% ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $4.40 per share. Aug.14 Sold the remaining Young Inc. shares at $33.40. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring 11,900 common shares at a total of $105,910. Johnson Inc. will sell these shares in six to nine months. Dec. 30 Sold 11,900 shares of Xavier Corporation for $190,400. Dec. 31 Allen Corp. announced a net profit of $289,500 for the year. Required: Journalize the above transactions. Johnson Inc.'s non-strategic investment portfolio at December 31, 2022, consisted of the following: Debt and Equity Investments* 11,900 Xavier Corp. common shares 2,200 Young Inc. common shares Cost $194,565 Fair Value $172,550 114,400 109, 120 139,000 Zed Corp. common shares 45,700 41,300 *The fair value adjustments were recorded on December 31, 2022. Johnson had no other debt and equity investments at December 31, 2022, other than those shown above. During 2023, Johnson engaged in the following transactions: 2023 Jan.17 Sold 1,700 common shares of Young Inc. for $81,600. Johnson Inc. planned to hold these shares for less than one year. Mar. 3 Purchased 6,900 common shares of Allen Corp. for $414,000. The shares represent a 30% ownership in Allen Corp. June 7 Received dividends from Allen Corp. at the rate of $4.40 per share. Aug.14 Sold the remaining Young Inc. shares at $33.40. Nov. 28 Purchased a 5% ownership in Davis Corp. by acquiring 11,900 common shares at a total of $105,910. Johnson Inc. will sell these shares in six to nine months. Dec. 30 Sold 11,900 shares of Xavier Corporation for $190,400. Dec. 31 Allen Corp. announced a net profit of $289,500 for the year. Required: Journalize the above transactions.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries are as follows Scenario Sale of Young Inc Shares Date Jan 17 2023 Debit Cash Ac 8160... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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