On January 1 2020 Potter Company purchased 100 of the 1000 shares of Voldomort Company for $800.
Question:
On January 1 2020 Potter Company purchased 100 of the 1000 shares of Voldomort Company for $800. Potter has no significant influence over Voldomort
On July 1, 2020, Voldomort declared and paid a $1 per share dividend
On December 31st Voldomort's stock was selling for $9 per share; Voldomort reported an income of $4000
On January 1 2021 Potter Company purchased 300 shares of Voldomort Company for $2700. Potter now has two seats on the Voldomort Board of Directors
On March 1, Voldomort had a two for one stock split.
On July 1, Voldomort declared and paid a $1 per share dividend
On December 31st Voldomort reported an income of $5000 and its stock was selling for $7 per share
On July 1, 2022, Voldomort announced that it will not pay a dividend in 2022.
On December 31st Voldomort reported a loss of $2000 and its stock was selling for $5 per share
On January 3rd, 2023 Potter sold all of its shares in Voldomort at $5.50 per share
REQUIRED:
A) MAKE THE REQUIRED JOURNAL ENTRIES FOR POTTER CONNECTED WITH ITS OWNERSHIP OF VOLDOMORT STOCK IN
2020
2021
2022
2023
B) FILL IN THE FOLLOWING TABLE
2020 2021 2022
Investment in Voldomort
income from investment in VoldomortExpert Answer:
Potter has no significant influence over Voldomort Thus this investment accounted using Fair value m... View the full answer
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
