Ali Company made the following investments in the year of 2021: On 1 January, Ali Company...

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Ali Company made the following investments in the year of 2021: On 1 January, Ali Company purchased 35% of outstanding ordinary shares of CK Holdings Limited. The purchase price was $300,000 for 50,000 shares. On 31 December 2021, CK paid S100,000 cash dividends. The net income for CK was $2,500,000 for year 2021. On 1 October 2021, Ali Company acquired 25,000 shares of Apple Limited at $20 per share with commission expense $1,000, On 31 December 2021, Apple Limited announced the net income for the year is S10,000 and declared $2 per share cash dividends. The investment is classified as trading securities. The market prices on the financial investments on 31 December 2021 are shown as below: CK Holdings Limited S10 per share Apple Limited S15 per share Required: Prepare all the relevant journal entries to record the investments in the following company in the year 2021 (Answers should be rounded to the nearest dollar.): (a) CK Holdings Limited (6 marks) (b) Apple Limited (7 marks) Ali Company made the following investments in the year of 2021: On 1 January, Ali Company purchased 35% of outstanding ordinary shares of CK Holdings Limited. The purchase price was $300,000 for 50,000 shares. On 31 December 2021, CK paid S100,000 cash dividends. The net income for CK was $2,500,000 for year 2021. On 1 October 2021, Ali Company acquired 25,000 shares of Apple Limited at $20 per share with commission expense $1,000, On 31 December 2021, Apple Limited announced the net income for the year is S10,000 and declared $2 per share cash dividends. The investment is classified as trading securities. The market prices on the financial investments on 31 December 2021 are shown as below: CK Holdings Limited S10 per share Apple Limited S15 per share Required: Prepare all the relevant journal entries to record the investments in the following company in the year 2021 (Answers should be rounded to the nearest dollar.): (a) CK Holdings Limited (6 marks) (b) Apple Limited (7 marks)

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As per given details please refer below answer a Journal Entries for CK Holding Limited W... View the full answer