Question 7 of 9 < > View Policies Current Attempt in Progress Some of the account...

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Question 7 of 9 < > View Policies Current Attempt in Progress Some of the account balances of Oriole Limited at December 31, 2022, are as follows: $8 Preferred shares (2,500 shares authorized, 2,500 shares issued and outstanding) Common shares (unlimited authorized, 44,000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income $480,000 560,000 109,000 796,000 23,885 -/6 E The price of the company's common shares has been increasing steadily on the market; it was $23 on January 1, 2023, and advanced to $26 by July 1 and to $29 at the end of 2023. The preferred shares are not openly traded but were appraised at $122 per share during 2023. Oriole follows IFRS and had net income of $148,000 during 2023. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. (a1) The company declared a property dividend on April 1. Each common shareholder was to receive one share of Pharoah Corp. for every 11 shares outstanding. Oriole had 8,500 shares of Pharoah (2% of the outstanding shares), which it had purchased in 2018 for $69,530. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Pharoah shares was $18 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Pharoah shares was $19.50. The Pharoah shares remained at a fair value of $19.50 until year end. Prepare the journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation (To record fair value adjustment) Debit Credit Question 7 of 9 < > View Policies Current Attempt in Progress Some of the account balances of Oriole Limited at December 31, 2022, are as follows: $8 Preferred shares (2,500 shares authorized, 2,500 shares issued and outstanding) Common shares (unlimited authorized, 44,000 shares issued and outstanding) Contributed surplus Retained earnings Accumulated other comprehensive income $480,000 560,000 109,000 796,000 23,885 -/6 E The price of the company's common shares has been increasing steadily on the market; it was $23 on January 1, 2023, and advanced to $26 by July 1 and to $29 at the end of 2023. The preferred shares are not openly traded but were appraised at $122 per share during 2023. Oriole follows IFRS and had net income of $148,000 during 2023. For the purpose of this question, ignore any dividend entitlement to the preferred shareholders. (a1) The company declared a property dividend on April 1. Each common shareholder was to receive one share of Pharoah Corp. for every 11 shares outstanding. Oriole had 8,500 shares of Pharoah (2% of the outstanding shares), which it had purchased in 2018 for $69,530. The shares are accounted for using the FV-OCI model. The accumulated other comprehensive income relates only to these shares. The fair value of the Pharoah shares was $18 per share on April 1. The property dividend was distributed on April 21 when the fair value of the Pharoah shares was $19.50. The Pharoah shares remained at a fair value of $19.50 until year end. Prepare the journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 5,275. Do not round intermediate calculations. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation (To record fair value adjustment) Debit Credit

Answer rating: 100% (QA)

Heres the journal entry to record the fair value adjustment for the Pharoah Corp shares held by Orio... View the full answer