On March 1, 2019, C Company bought the common shares of two companies with a 20% ownership
Question:
On March 1, 2019, C Company bought the common shares of two companies with a 20% ownership share in each as follows:
Company Name | Cost |
company A | 30000 |
company B | 50000 |
Total | 80000 |
On December 1, Company C received a dividend of $ 18,000 from its investment in the common stock of Company B, and Company A did not distribute a dividend.
As of December 31, 2019, the fair value of the available-for-sale equity securities portfolio was as follows:
Company Name | Cost |
company A | 24000 |
company B | 60000 |
Total | 84000 |
On January 1, 2020, C Company bought 20,000 shares of D Company at a price of $ 1 per share and paid $ 4,000 brokerage and VAT on the brokerage value of 5%.
On June 10, 2020, Company B sold all of its investment to Company A for $ 40,000.
As at December 31, 2020, the fair value of the available-for-sale equity securities portfolio was as follows:
Company Name | Cost |
company B | 70000 |
company D | 20000 |
Total | 90000 |
Required:
1- Recording the daily operations and the necessary settlement for the year 2019.
2- Photocopy of the company's portfolio of securities available for sale on December 31, 2019.
3- Recording the daily operations and the necessary settlement for the year 2020.
4- Photocopy of the company's portfolio of securities available for sale on December 31, 2020
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,